This is not a short-term trading signal. However, it is something to consider for a long-term look at the sentiment and psychology of the market. You might also argue that a secular bear market (since 2000–Look at that Nasdaq) will feature sidelines retail money for many more years, until we enter the heart of the next secular bull. But there is always the notion that in order to arrive at a cyclical bull market top, even with a secular bear, like we saw in October 2007, there needs to be some euphoria on the part of retail. food for thought, indeed.
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via FoxBusiness.com
$12K in Checking? You’re Lemon-ing
We are all Liz Lemon.
In one of the early episodes of the recently concluded NBC series “30 Rock,” Jack Donaghy, played by Alec Baldwin, asks Tina Fey’s character Liz Lemon where she invests her money. She replies, sheepishly, “I have like 12 grand in checking.”
But the latest numbers from the Federal Reserve reveal that Liz is far from alone in keeping a big chunk of her money in checking. Checking account balances have risen sharply since the financial crisis rocked markets and interest rates on certificates of deposit have fallen to all-time lows. Now, there is $902 billion sitting in American checking accounts, the highest it’s been since the Fed began collecting data in 1959.
In fact, the amount of money sitting in checking accounts actually has exceeded the total amount in CDs since late 2011, which hasn’t been the case since the early ’70s.
Of course, you could always put your savings into a balanced portfolio of stocks and bonds designed to grow wealth over the long term. But if you’re committed to keeping a ton of cash in a checking account, there are ways to earn a return.
