Univest Senior Vice President of Investments Bill VanSant says people are still nervous about an unstable stock market, but they are also unhappy with low bank interest rates, and he sees more people willing to take a little bit of a risk. “We are seeing more of an appetite for risk over the last 6 months or so as bank rates continue to be very low, and when you factor in inflation it’s actually a negative real rate of return that you’re achieving, so individuals are looking at doing something else with their money, but we warn you don’t want to just go from a maturing CD to buying individual stocks. Let’s really take a look at the risk parameter.”
VanSant says corporate or government bonds can provide a better return than bank CD’s, and the risk is low as long as their bond rating, similar to a credit rating, is Triple-B or better. He appeared Thursday on the WNPV talk program Comment Please by Univest.