For millions of Americans, watching and waiting is the new day-trading-and the trillion-dollar question is when they’ll feel fully comfortable investing in stocks again. In the U.S. alone, investors still have nearly $900 billion parked on the sidelines, according to Thomson Reuters.
States and municipalities have jumped on a new bond program, selling $12 billion of Build America Bonds since the program began in mid-April. The issuers have benefited from lower borrowing costs.
Shortly after Andrea and Rick Campbell got married, when Rick was fresh out of graduate school, Andrea’s parents suggested the young couple could benefit from a trip to their financial planner.
It might sound premature to worry about rising prices when inflation and demand for cars, copper and nearly everything else are at their lowest levels in years.
After months of grappling with the financial crisis and government-ordered stress tests of their health, banks are emerging from the chaos determined to win new business.
In an environment like this, investors expect companies to do whatever they can to resuscitate shrinking profit margins. Layoffs, salary freezes, the free soda in the company cafeteria – nothing is sacred, not even the 401(k) program.
