Sometimes being sophisticated with your money means not investing it at all, writes Thomas Kostigen.
By Daniel at 23 April, 2008, 6:51 am
This column may be entitled “Sophisticated Investor,” but sometimes being sophisticated with your money means not investing it at all. Indeed, a new nationwide survey conducted by Harris Interactive for the American Institute of Certified Public Accountants (AICPA) finds that 25% of U.S. adults are spending wisely or not spending as much as a means of saving money.
This may be why so many people are skittish about the markets. If the financial professionals controlling the most amount of money in the world (institutions) can’t even make a buck by investing, what about the average investor? Nah-uh, better to keep tightfisted.
People with larger amounts of money are also parking it in safe spots. Recent surveys of wealthy individuals show that about a third of their assets are on the sidelines, an allocation significantly up from recent years when money was pouring into equities, derivatives and real estate.
By not investing and not spending, people are putting the brakes on the economy.
An ABC News/Washington Post poll shows that consumer confidence is at its lowest level in 15 years. Eighty-five percent of Americans say the economy is in bad shape, while 77% of respondents call it a bad time to spend money, according to the poll.
Meanwhile, consumer confidence in the luxury market has dropped to an all-time low.
InvestmentWatch relies on the financial support of its readers.
Your endorsement is greatly appreciated!
Possibly Related Posts:
- Real Estate Bubble in Beijing
- Tonight on Asian news they were calling for a correction in gold to reach $870 before taking off to $1,200 later this year or next.
- Forbes Article: “JPM is the Best Bank”
- US Treasuries and all paper money
- China mid June steel output hits 2009 high -CISA
Did you like this? If so, please bookmark it, about it, and subscribe to the blog RSS feed.Share this Post[?]















No comments yet.