What Investors Are Thinking
Our Investor Pulse survey sheds new light on what investors are thinking and doing in the current investment environment.
In the face of challenging global economic conditions and a new world of investing, BlackRock wanted to know what was on the minds of investors. How are investors feeling about meeting long-term financial goals, especially retirement? What are key concerns about the current investment environment? How willing are investors to make portfolio adjustments to capture opportunity?
Our annual Investor Pulse survey provides answers to these questions that are on the minds of investors today. We conducted this research in summer and fall of 2013 with 4,000 U.S.-based investors and 500 financial advisors. What we learned might provide some helpful insight as you think about what to do with your clients’ money. Our five findings are presented here.
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.
Take a Look at BlackRock's Strategic Income Opportunities Fund:
The fund can adapt as markets change and move freely in search of the best returns, while seeking to protect against rising interest rates.
Apply the Research to Your Practice
Watch BlackRock's Investment and Retirement Education expert discuss the findings from the most recent survey.
Learn More About the Survey
This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Any opinions expressed are as of October 2013 and may change as subsequent conditions vary. The information and opinions contained in this paper are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. This content may contain "forward-looking" information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this paper is at the sole discretion of the reader. The information provided here is neither tax nor legal advice. Investors should speak to their tax professional for specific information regarding their tax situation.
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