Why Cash Is King – Especially When the World Feels Uncertain

Jonathan Eriksen talks to ausbiz about simple investment advice, mental health, and the value of holding back.

If you had $25,000 sitting in cash, what should you do with it?

For many, the instinct is to invest — to put the money to work. But right now, the smartest move may be the simplest one: hold it.

That’s the view of Jonathan Eriksen, Managing Director of EriksensGlobal, who recently joined ausbiz to discuss today’s economic uncertainty, the value of capital preservation, and why looking after your mental health is just as important as growing your wealth.

Cash Gives You Time, Control and Clarity

Jonathan is clear: “At the moment, cash is king.”

With rising geopolitical tensions, interest rate unpredictability, and inflationary pressures still in play, the global economy is shaky. While markets may show moments of confidence, Eriksen sees more downside risk than upside opportunity right now — particularly for organisations and individuals with short- to medium-term horizons.

Rather than chasing returns, he advises people to focus on stability, flexibility, and liquidity.

“Leave the money in the bank for now,” Jonathan says. “Wait for a better buying opportunity.”

Term Deposits: A Middle Ground

One strategy Jonathan recommends — for individuals and organisations alike — is short-term term deposits.

While these won’t beat inflation, they offer predictable returns, low risk, and quick access. In uncertain times, that matters.

“A short-term deposit gives you a reasonable rate of return, around the same as inflation. That’s why we think it’s a better option right now.”

Having options around cash can be more valuable than trying to always make more — especially when markets could shift rapidly. Fast, accessible cash allows you to navigate any unexpected life expenses.

The Central Banks Have Paused

The Reserve Bank of Australia (RBA) recently surprised some people by holding its cash rate steady. The RBA have been more cautious to bring down interest rates - most likely because of the ever-changing macro-economic environment. Jonathan expects the Reserve Bank of New Zealand to do the same.

These pauses are signals — central banks are being cautious, and so should you.

“With commodity prices shifting, trade tensions simmering, and both literal and economic wars unfolding, imported inflation and currency volatility are hard to predict,” Jonathan explains. “That’s why we’re staying conservative — and advising clients to do the same.”

Financial Stress Isn’t Just About Numbers

In the interview, Jonathan opens up about a deeply personal experience. He lost a friend and colleague to suicide following the 1987 market crash — a painful reminder that financial stress can have real and lasting impacts on mental health.

“Stress affects judgment. Too much stress is bad for your health,” he says. “Sometimes the best thing you can do is step back, slow down, and focus on the bigger picture.”

His advice is not just financial — it’s human.

Take time to reconnect with nature. Go for a walk. Ride the ferry. Do something that reminds you life is more than just money.

Because, as Jonathan says:

“If you don’t have your health, money doesn’t mean much. But if you’re unwell and you don’t have money — that’s a far worse position to be in.”

Strategic Investing Means Knowing When Not to Invest

Whether you're an individual with extra savings or a CFO managing millions in reserves, the principle remains the same: don’t rush.

Holding cash is not inaction — it’s a strategy.

It gives you time to breathe, plan, and move when the timing is right.

At EriksensGlobal, we’ve helped organisations across Australasia navigate uncertainty and the South Pacific with independence and care. Our advice is always tailored — because no two investment goals are the same. And now, we’re bringing that same thoughtful approach to individuals who want clear, practical financial advice they can trust.

Want more insights from Jonathan? Follow him on LinkedIn. Stay updated on wider investment updates and news via the EriksensGlobal LinkedIn company page.