Reluctant to Invest as People Hold on to Cash
Our survey results suggest that cash has come to represent a safe haven in an uncertain world. Many U.S. investors are choosing to sit on the sidelines, having fallen into the habit of seeking shelter in cash and savings accounts. Nearly half of U.S. investors' portfolios are in cash, with a relatively small proportion dedicated to longer term investments.
In today's low-rate world, many are beginning to realize that the purchasing power of their savings is being eroded by inflation, yet they are struggling to identify better ways to balance their short- and long-term financial priorities. Unfortunately, many remain wary of investing, with half intending to keep their allocation to cash at the same level over the next 12 months.