Americans Are Sitting on a Cash Pile as Stocks Reel

BUY NOW! The market is on a rollercoaster, and Americans are reacting by hoarding cash. According to a recent survey from Empower, nearly half of Americans feel safer holding cash than other investments. Why? Market uncertainty and the looming threat of a recession have investors spooked. Let's dive into why cash is king right now and what it means for your portfolio.

CASH IS KING! And Americans are taking notice. With market volatility at an all-time high, 49% of Americans are feeling the FOMO and are holding onto their cash. Why? Because cash is liquid, it's safe, and it's a lifesaver during emergencies. Adam Paoli, the lead financial planner at Coltiva Wealth, says it best: "Holding cash during times of economic uncertainty, like a potential recession, can feel reassuring because it offers liquidity and a sense of control." And who doesn't want that?

THE MARKET HATES UNCERTAINTY! And right now, there's plenty of it. The S&P 500 has fallen by as much as 10% in recent days, and the market is on edge. But here's the thing: market corrections are a normal part of investing. Since 1980, the S&P 500 has experienced a drop of 5% or more in 93% of calendar years, and a drop of 10% or more in 47% of calendar years. So, don't panic! Historically, the market has recovered quickly from corrections. The chart below shows the largest drop from a market high in each year (red dots). You can see that it’s not uncommon to experience significant market declines. But the market still has often recovered and produced positive results in most years (shown as the green bars).



SO, WHAT DO YOU DO? You need to act now! If you're sitting on cash, you're missing out on potential gains. But if you're worried about the market, consider this: the market has historically recovered from even the steepest pullbacks. And with corporate profits expected to grow by double digits in 2025, now is the time to invest.

DON'T MISS OUT! On the opportunities that a market correction presents. If you're not already investing, you can take advantage with one of our picks for the best investment accounts. And if you're already invested, consider adding to your positions. Remember, the market hates uncertainty, but it loves a good bargain. So, don't be afraid to buy the dip!

THE BOTTOM LINE: Cash is king, but it's not the only game in town. With market volatility at an all-time high, now is the time to act. Don't miss out on the opportunities that a market correction presents. And remember, the market has historically recovered from even the steepest pullbacks. So, stay calm, stay invested, and stay ahead of the game.