Where to park cash if you’re worried about the stock market
By Kate Ashford, NerdWallet
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In recent weeks, 44% of Americans in households making $125,000 or more say they’ve put more cash aside to cover future expenses. That’s according to the Conference Board’s May Consumer Confidence report.
But are they investing it?
“Keeping money in cash forever isn’t a plan,” says Rebecca Palmer, a certified financial planner in Washington, D.C., and head of guidance for financial planning platform Fruitful.
“It’s actually postponing a plan,” she says.
More than a third (37.7%) of consumers expect stock prices to decline over the next 12 months, according to the report. That’s a more optimistic number than April’s 47.2%, but still higher than the 23.7% who expected a drop in January.
“There’s definitely a feeling of fear in the markets right now,” Palmer says. “A lot of people are feeling this, [and] it’s OK.”