With guaranteed returns of 4-5% on safer investments like treasuries and savings accounts, some investors may choose to allocate less capital to the riskier stock market, opting for these alternatives in the short term.
"because if the option was you can maybe get a 10% return in the stock market but it's risky or get a 1% return in the treasury market Market or high interest savings account well now there's a big spread here that 10% return seems a lot more attractive when the alternative is a guaranteed 1% return but when it's a guaranteed 4 to 5% return versus a potential 10% return with all the other issues going on what you're seeing is a lot of investors are saying you know what maybe we'll just put our money into treasuries maybe we'll put our money into the high interest savings account and avoid some of that risk for the short term"