Steady Investment Strategies in the Face of Market Turmoil, Poll Shows

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Leading financial websites MoneyRates.com and GetRichSlowly.org asked site visitors about their investment strategies. Despite the ongoing ups and downs in the stock market, investors are holding steady when it comes to their savings.

MoneyRates.com and GetRichSlowly.org

Even with a strong market rally from early 2009 to early 2010, not everybody had rushed back into the stock market by early this year. That's actually a bullish sign--there is still money on the sidelines that could be invested.

Despite the Dow Jones being 1,000 points off its 2010 peak, investors are hanging tight in their investment allocations.

MoneyRates.com and GetRichSlowly.org recently polled their visitors to find out where they are investing their savings amidst the bumpy ride of the stock market. Although the Dow has continued to experience 100-point daily drops and even a few 300-point tumbles, the poll results were largely the same as those from a similar survey conducted on both sites in March 2010.

Visitors to MoneyRates.com and GetRichSlowly.org were asked: "Where are you investing most of your savings today?" Here's how the 870 respondents broke down:

  •      Stocks (22 percent)
  •      Fixed-income investments/bonds (6 percent)
  •      Savings account or checking account (35 percent)
  •      Diversified portfolio (20 percent)
  •      What savings? (16 percent)

MoneyRates.com personal finance expert Richard Barrington offered several reasons to explain the responses, which were nearly identical to those from the March 2010 survey. He notes that investors in March appeared to be investing conservatively, and that hasn't changed. "Even with a strong market rally from early 2009 to early 2010, not everybody had rushed back into the stock market by early this year," says Barrington. "That's actually a bullish sign--there is still money on the sidelines that could be invested."

In addition, many families may have only recently started socking money away in a money market account or high yield savings account again, which means that money for long-term investments is not available yet. As Barrington puts it, "In addition to the 16 percent saying, 'What savings?' there's probably a good number of people who haven't gotten past the stage of building an emergency fund. That could help explain the heavy weighting toward savings accounts."

Finally, Barrington notes, "The more sophisticated an investor is, the calmer they are likely to be in the face of short-term market fluctuations." With both MoneyRates.com and GetRichSlowly.org dedicated to consumer education and financial literacy, it makes sense that site visitors are more likely to stand steady in the face of stock market upheavals.

Further analysis by Barrington on the poll results can be found in his article, "Savers Standing Firm in the Face of a Shaky Market."

MoneyRates.com is a consumer information website providing tips on saving and banking as well as interest rates on more than 200 banking products. It has been a leading source of information on bank rates, personal finance, savings accounts and investing since 1999. Visitors to MoneyRates.com can research the highest rates on certificates of deposits, money market accounts and high-yield savings accounts.

GetRichSlowly.org is an online community devoted to sensible personal finance. Since 2006, GetRichSlowly.org has provided thousands of active readers with a forum to learn about and discuss saving money, eliminating debt, finding the best high interest rates and pursuing practical paths to accumulating wealth. The site is among "The Top 100 Personal Finance Websites," according to Liz Weston of MSN, and has been named "The Most Inspiring Money Blog" by CNN's Money magazine.

Richard Barrington is available for interviews on this topic and other topics relating to personal saving and investing. To interview Richard, please contact:

Jessica Austin
pr(at)moneyrates(dot)com
650-578-6880

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Jessica Austin

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