There is a record $21.2 TRILLION in US retirement accounts, cash and bank accounts and retail money market funds.

While there is a record high amount of assets in the retirement complex, there is a low percentage invested in equities.  I have used the market value of the S&P 500 as a proxy for the equity portion of the retirement assets.  US investors are underinvested in stocks.  The S&P 500 is equal to only 50% of the value of all retirement assets today compared to 89% in 1999.  Not since 1994 (with brief exception on 2008 bear market) have stock values been equal to such a small percentage of retirement and liquid retail assets.  A recovery to the average ratio of equities to retirement assets of 66% since 1995 would imply an increase of the S&P 500 market value of over $3.3 trillion or 31% greater than today.  There is not a lack of funds to invest – there is a lack of confidence to invest. Jeb Terry, Sr. Aug 17, 2011

Aberdeen Investment Management – a guide service for micro-cap technology investment

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