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Are we -- were worry about your tonight despite recent all times highest in the stock market and record low interest rates.
A new report from Bankrate dot com find the vast majority of Americans 76 -- percent.
Are steering clear of the stock market and have no intention of reentering any time soon.
That course could be a big mistake joining me now Greg McBride senior financial analyst for Bankrate dot com Greg always great to have you here and love having you -- -- I was shocked by this number.
Well because we saw the same result last year but what's happened in the last twelve months Jerry interest rates -- gone down more the stock market's gone up more.
Yet people are not swayed still more than three and four saying get there not more inclined to invest in the stock market now.
I think it's just clear evidence that for a lot of people the wounds of 2008.
Are still very fresh.
And a lot of people that wasn't the first time they've been burned they got burned in the tech bust in 2000.
Beginning -- they've seen this movie they're afraid it -- the same way -- that there's going to be a big sell off and that they'll get caught it and frankly our viewers tell -- this all the time.
They ever come to think I mean I think it's interesting after this huge -- you still see people on trusting.
Exactly to give me two concerns frankly Jerry is that when the short term I'm worried that if the market does continue to go up.
Will they finally capitulate and go into the market only to then see a correction.
Or some type of pull back and then they panic south that's the short term concern the long term concern is if they stay out and it didn't frankly even if they got -- at this point.
You've missed four years of tremendous gains what impact does that have -- your long term financial security I mean the fact is people don't save enough.
To settle for -- he's likely to be able to sell promote returns when it comes to things like retirement savings so.
If if you're you if you're not using equities to do build that -- -- I just I think millions -- we're going to be Welsh.
You know there was a time and money market funds -- -- 5%.
You know bonds would paid double digits that it's not this time it's not we're not paying money and -- but it's not going to be for awhile -- -- -- I -- shoot some numbers from the American Association of Individual Investors they had a a poll out as well weekly -- -- this -- investor sentiment among individual investors bearish 48%.
I mean what it everybody's saying the same thing here that people are just not believing in the stock.
Why do you have.
Every define risk to right I mean how many people do you and I both know that -- drive ninety miles an hour down the interstate while talking on a cellphone and -- -- -- about singling.
But they're afraid to put their 41 K money in the stock market that's right that's -- it.
That redefined risk because did the right now the risk is.
In the -- for the long haul in settling for conservative returns in cash and bonds.
Where you're not gonna preserve your buying power you're not gonna grow your nest -- he -- where you need to be.
If -- -- a lot of people need to rethink that risk and over the course of the 102030 year investment horizon.
It equities are not where the risk is that it's in the very conservative.
Investment also think that we have to redefine investing.
It shouldn't just be about stocks and bonds it's got to be about other things as well it's got to be about real estate it's gonna be about you but your small business it's got to be about maybe you -- Art.
We have to think about it the bigger way instead of just sinking stock stock stocks well.
-- I'm a big fan of a diversified portfolio and -- -- -- -- all components of that I think a lot of people reach that real state threw for homeownership.
And -- don't double down on that by -- ahead on the mortgage whenever you're not put your 41 -- money into the stock market.
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