Cash is king as Trump shakes up world order

DONALD Trump has subjected investors to yet another rollercoaster ride over the last week, leaving millions reeling as their pensions plunge one day, then climb the next.

- By Harvey Jones

This is a ride nobody asked to go on, and is particularly stomach-churning for pensioners, who don’t know what the savings they have built up over a lifetime will be worth from one day to the next.

Trump triggered turmoil by imposing sweeping global tariffs, then switched course with a 90-day pause on Wednesday, with the world on the brink of financial meltdown.

Yet even here he doubled down with a headline-grabbing 145% levy on Chinese imports — and there will be more twists and turns to come.

US investors remain nervous and Wednesday's historic "relief rally" didn't last, said Axel Rudolph, senior technical analyst at online trading platform IG. "More investors were keen to offload than enter the fray."

Chancellor Rachel Reeves has chosen this moment to float a deeply controversial plan: cutting the annual Cash ISA allowance from its current £20,000, possibly to as low as £4,000. Her aim is to nudge savers to invest more money via the Stocks and Shares ISA allowance, in a bid to emulate the long-term investment culture of the US.

Her timing could hardly be worse.

She is pushing people towards shares, when many would rather they had stayed in cash all along.

VOLATILE

Markets are volatile, investor confidence is fragile and older savers who prefer the predictability of cash are most likely to be spooked.