Mr Hughes suggested gold might be an interesting alternative to cash for those investors looking to take a defensive stance on their portfolios.
Ben Yearsley, director at Shore Financial Planning, said he understands why these firms have ramped up their cash weighting.
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“Political uncertainty has risen over the last few weeks as the Tories’ lead has evaporated in the polls, and the likelihood of a hung parliament has increased.”
But Mr Yearsley questioned if sterling is the right answer, suggesting the pound will fall if Jeremy Corbyn wins.
“Therefore sterling cash only partially protects your portfolio because you lose global buying power.”
katherine.denham@ft.com
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