11% of Americans "Extremely Nervous" About Investing Their Money in Market

Despite a bit of turmoil over the past couple of weeks, the S+P 500 and Dow Jones Industrial Average both remain within striking distance of their all-time highs.

The Federal Reserve's insistence on keeping interest rates low has continue to buoy equity markets. Until interest rates start to meaningfully increase in the country, the long upwards march for the market will likely continue.

Despite the stunning gains that the markets have made over the past 5 years or so, a full 52% of Americans said that they believe that NOW is a good time to invest in the financial markets. This figure has more or less been the same over the past couple of years - so, despite the monster year that the markets turned in last year, most people are still very optimistic that the party can continue.

-

According to a Gallup poll, 41% of Americans said that they would invest in the markets if they had an extra $10,000 sitting around in their bank account. 36% said that they would keep it in cash, while an additional 20% said that they would buy a CD with the money.

11% of those surveyed said that they felt "extremely nervous" about investing their own money in the markets, while 34% were "somewhat nervous". Just 16% of those surveyed said that they didn't feel nervous at all about investing in the markets.

-

46% of those surveyed said that they were optimistic about the outlook of the stock market over the next 12 months. 26% said that they were pessimistic, while an additional 25% said that they felt neutral.

-

While many Americans are still jazzed about the market's prospects over the near-term, others aren't sharing the same optimism. Soros Fund Management LLC, for instance, has amassed a $2.2 billion position in SPDR (S&P 500 ETF) puts.

What do you think - do the markets go higher or lower from here?

Source: Gallup.com - US Investors Seem Unaware of Bull Market's Strong Gains

Filed under: General Knowledge