Many Americans invest blindfolded
Too many American adults are investing blindfolded, according to an analyst for MoneyRates.com, after a survey conducted revealed that investors were setting investment goals but did not take the right action.
The survey of more than 1900 Americans aged 25 and over found that 21 per cent were unsure what was their number one investing priority, and 12 per cent did not know what asset classes held the majority of their savings.
Of investors who listed growth as their primary investment objective 23 per cent said they had most of their holdings in cash. Those who listed principal preservation as their primary objective 28 per cent listed stocks as their primary holding.
MoneyRates.com senior financial analyst, Richard Barrington, said the challenging nature of today's investment landscape makes haphazard investing even more dangerous.
"Between unreliable markets and super-low interest rates, investors already have enough stacked against them," he said.
"Investing without putting any thought into it makes a tough job nearly impossible."
The survey found investors aged 55 and older were two and a half times more likely to list principal preservation as their primary investment objective, yet on average had more invested in stocks than in cash.
Also, women were found more likely to not know their primary objective or which asset class hosted the majority of their savings.
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