Only 3% of Fidelity 401k participants stopped buying stocks, and only 0.6% of Vanguard investors moved to all cash from Feb to April

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by cefpodoxime

Many of Fidelity’s retirement savers continued to contribute steadily with an average contribution of 8.9%, and 15% of savers even upped their contributions. Just 3% of 401(k) participants stopped buying stocks with their contributions.

Vanguard told Yahoo Finance that its clients have “overwhelmingly stayed the course,” with just 10.7% of U.S. households trading between Feb. 19 and April 17.

“Of those trading, 44% made only one trade during this period,” said Vanguard’s Felicia Melvin. And only 17% of people who made a trade made more than six.

Again, very few people stopped investing in equities: 0.6% of investors moved into an all-cash position while two-thirds of households moved into equities, though cash-wise more money flowed into fixed income.

Surprising vast majority of 401k participants are staying the course, and it seems these people are really unaffected by the overall mass unemployment. Vast majority of those out of work today don’t have 401k or incomes to contribute in the first place. Anyone think 401k investors are large reason why the market has had every dip being bought? The bottom is clearly past us.



Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.


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