After poor stock market performance over the past few years, many investors are holding on to cash. A survey by BlackRock ranks the reasons why people aren’t investing, and the results may be different from what you had expected.
Uncertainty about where to invest (37%)
Belief that it’s a poor investing environment (26%)
Fear of investing/losing money (23%)
Previous portfolio losses (8%)
Not applicable, have not pulled back on investment activity (6%)
Investors are not completely closed off to the idea of investing, but instead don’t know where they should put their money. One of the chief benefits of employing a relative strength strategy is that it provides the framework for allocating assets–thereby removing the biggest stumbling block to getting investors in the game.