http://money.cnn.com/2015/04/10/investing/investing-52-percent-americans-have-no-money-in-stocks/index.html
This is a very troubling article showing that less than half of Americans are investing in the stock market whatsoever. Especially considering the rise of stocks, most people are missing out on excellent returns on their money, which could help their financial situations. Instead, they are increasingly turning to cash and lower return investments, which hurts the GDP as well as increasing the wealth inequality problem (wealthier people are more likely to have stocks, and those are increasing while the return on cash remains slim to none).
5 comments:
I think people are not investing in stocks now and preferring cash so that when interest rates rise, they can invest that money in securities that pay high return.
Once people begin to realize that there may not necessarily be social security after they retire, it'll make them legitimately start thinking of ways to save and invest. I'm curious about the percentage of population that actually know that they have an option of investing in stocks.
With interest rates at zero, it does not make sense to be holding large sums of cash. Consumers are still very timid after the Great Recession. The past upturn in the economy has earned great wealth for many, but only those who tolerated the risk. I think Ibs raises a valid point about preparing for retirement.
I think American just really trust their government on their retirement. Social security is a rip off but most people are not educated on finance to understand about different investment options. Hopefully with articles like this, people will be more inform and start to invest more
Although investing in the stock market is beneficial with a lack of money to save, education and trust I am far from surprised that many people are not investing their money in the stock market. With the wage disparities and high income inequality only people with a little extra can save and right now that is not the majority. If wages were higher, i.e. working wage and their was more education more people would invest. For now trust is low.
Post a Comment