Canadians are hoarding something a lot more these days.
According to a new report from CIBC World Marketsholding Canadians are holding on to a record $75 billion in extra cash.
Normally that extra money would be invested in equities, but the study found that nervousness over volatility in the markets has many Canadians reluctant to take the plunge. The findings didn’t come as much of a surprise to AM640 Business Analyst Lou Schizas “They may just feel more comfortable waiting for a bottom and then looking for a buying opportunity.” Schizas said.
But the CIBC report says, that could end up costing Canadians billions in lost investment returns.
In the past year alone, cash positions are estimated to have risen more than 11 per cent – the fastest pace since early 2012.