by Hans Eisenbeis
WHAT’S HAPPENING
- We know consumers are in emergency savings mode during the Great Recession. So where are they putting their money for long term returns? Forget the stock market. According to a new poll from Gallup, Americans’ confidence in stock and bonds is down a whopping 50% since 2007 (Gallup.com 5.8.09).
- Not surprisingly, their interest in traditional savings accounts — low risk, relatively low returns — increased. Now more than two thirds of Americans favor savings accounts and real estate as the best place to park their money for the long haul.
- Only 15% of those polled said stocks and mutual funds were good investments, and 12% were interested in bonds.
WHAT THIS MEANS TO BUSINESS
- Americans want to save money, yes, but how? Where? Traditional savings accounts are in demand, and despite the burst housing bubble, they still look at real estate as a sound long term investment.
- Consumer investors are walking away from risk. The huge gains that were achieved on Wall Street in the past are now seen as a mirage, and they’ll be much more conservative with their money going forward.
