Home / Business and Economy / US Investors Ditch Stocks for Cash
US Investors Ditch Stocks for Cash
22 Sep
Summary
- US investors are increasing their cash holdings.
- Inflation resilience and flexibility are key drivers.
- Risk profiles have been reduced by 43% of investors.
Large investors in the United States are increasingly allocating assets to cash, as indicated by Marsh's 2026 US Asset Owner Barometer. This trend is primarily fueled by a desire for both inflation resilience and enhanced flexibility within investment portfolios.
The survey revealed that a substantial 43% of US investors reduced their overall risk profile over the past year. This recalibration involved increasing cash reserves and decreasing exposure to assets like liquid corporate credit, signaling a more cautious market outlook.
Beyond cash, investors are prioritizing assets that offer protection against inflation. Private infrastructure, inflation-linked bonds, and commodities were identified as top areas for increased investment flows, reflecting a broad concern about rising price levels.
Furthermore, investors are re-evaluating their equity allocations. There is a noticeable trend of reducing overweight positions in US equities, with profits being redeployed into emerging market and international equities. This shift aims to balance risks and capture growth opportunities globally, moving towards a more market-weighted approach rather than an overweight stance in domestic assets.
