Monday, May 5, 2014

Retirement Investors Move to Stocks

Investors are showing a renewed confidence in the stock market by turning over more and more of their retirement assets to equities, according to a report in the Wall Street Journal last week. Stocks made up 67 percent of the contributions into retirement portfolios in March. That's the highest that figure has been since March 2008, shortly after the recession had officially begun.

The difference has been pretty remarkable. As of March, the average 401(k) was made of 66 percent stocks. In February 2009, that same number was just 48 percent.

A separate study shows how much investors have moved away from so-called safe havens. The percentage of assets allocated to bond funds and money market funds in IRAs is just 25 percent now, the lowest that number has been since 2007.

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