Stay In Cash Or Invest?

I could give song and verse about why it is a good time to sit in cash based on high valuations in equity markets or Bond prices being low, but my job is about long term financial and tax planning for people who are living in Italy. Therefore, 99% of the time the answer to the question will always be to invest and not sit in cash. 

That might sound like a simple and quick reply to the question, but there is really only one instance when we would advise someone living in Italy to stay in cash for any period.

Why should I keep my money in cash?

For anyone who needs cash in the short term — for a renovation of their Italian home, an Italian property purchase, or a major life event, money to support income needs or care costs etc — keeping money in cash is sensible, regardless of interest rates or market returns. Cash is stability, and stability has a value when we have expenses or liabilities, which can be quantified both monetarily and the term over which they need to be paid.