Tags: Bankrate | interest rates | stocks | invest

Bankrate Survey: Low Interest Rates Not Driving Americans to Stocks

By    |   Tuesday, 22 April 2014 11:24 AM

Short-term interest rates near record lows and stock prices near record highs apparently aren't convincing Americans to invest in equities, a new poll shows.

Of the 1,010 adults who participated in the Bankrate survey, 73 percent said they are not inclined to invest in the stock market now that interest rates on savings accounts and CDs are so low, while only 22 percent said they are more inclined.

Among those respondents who are employed, 27 percent said they were more inclined to invest in the stock market, compared with 16 percent of the unemployed respondents who said so.

Editor’s Note:
Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now


"Americans may be avoiding the buy-high, sell-low habit seen in previous market cycles, but only because they're not buying at all," Bankrate Chief Financial Analyst Greg McBride said in a statement.

"An overly conservative investment stance compounds the problem that so many Americans have of not saving enough for longer-range goals like retirement."

In addition, 20 percent of the respondents said they are more comfortable with the amount of money they have saved relative to a year ago, while 32 percent said they are less comfortable and 45 percent feel about the same.

Regarding the amount of debt they have as compared with 12 months ago, 21 percent are more comfortable, 25 percent are less comfortable and 50 percent are about the same.

Meanwhile, 24 percent of those polled feel more secure about their job than 12 months ago, 16 percent feel less secure and 59 percent feel the same amount of security.

Some professional investors share the caution of their retail brethren, despite — or perhaps because of — the fact that the S&P 500 index hovers within 2 percent of its record high.

"A lot of professional money managers are still skittish," Sam Stovall, chief equity strategist at S&P Capital IQ, tells The Wall Street Journal. "I'm of the mind-set that maybe we're within a week of something happening" to cause another pullback, perhaps about 5 percent.

Editor’s Note: Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now

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InvestingAnalysis
Short-term interest rates near record lows and stock prices near record highs apparently aren't convincing Americans to invest in equities, a new poll shows.
Bankrate, interest rates, stocks, invest
352
2014-24-22
Tuesday, 22 April 2014 11:24 AM
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