INVESTORS HOLD ONTO CASH
“Investors have a mountain of cash”. Michael Hartnett, Bank of America’s chief investment wrote that in a report. A Bank of America Merrill Lynch survey found that cash stockpiles are at their highest levels since 2001, just after the 9/11 attacks. This sudden hoarding is indicative of the fear investors have of holding risky bonds and stocks and further underlines the gradual slowing of the United States economy. It’s a bad time to hold money due to the low global interest rates. Cash sitting in the bank earns very little, and after inflation, cash actually loses value.