Reported 25 days ago
As interest rates decline, many investors are reluctant to move away from cash, CDs, and savings accounts that currently offer attractive yields. Financial advisors are finding it challenging to convince clients to shift their investments despite expected lower yields, often due to a preference for the security of known returns. The trend of 'ambiguity aversion' contributes to this hesitancy, as concerns about the economy and interest rates create uncertainty. While some financial experts advocate for investing in long-term bonds to mitigate potential losses from rate cuts, many individuals remain cautious about changing their established cash-heavy strategies.
Source: YAHOO