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Retirement saving clients are moving out of stocks, says Fidelity

The personal investing president of Fidelity, Kathleen Murphy has said this Friday that fidelity clients, who are saving for retirement, have started to move more money into the volatile market recently. There are millions of such customers who are saving money for their retirement and not trading money and that over the last several months there was more such money on sidelines. She said that more money was going to the money-market funds.

Money-market funds’ assets in US were equally as safe as money in bank accounts and as per private reports it had reached $3.36 trillion in the previous month and was the highest since the year 2009. Murphy said that this shift has come amidst a roller coaster for the market which has seen ups and downs amidst global economic uncertainty and the ongoing US-China trade war. The US President’s positive views on the trade talks with China has made the US stock futures to point to a sharp high on Friday on the Wall Street. The stocks were following an unsure path in the previous week due to positive as well as negative reports about the trade talks.

She said that people were not panicking and were following a wait and see criteria. However the case with active traders is just the opposite. They are leaning into the volatile market and are trading more and more. They are very busy trading when the market is volatile. Fidelity Investments has announced on Thursday that zero-commission online trade is being offered by the company as part of their move towards a low-fee system. Commissions have been eliminated on all sorts of trades like options, stocks and exchange-traded funds.

Following this similar moves have been announced by E-Trade, Interactive Brokers, Charles Schwab and TD Ameritrade. Murphy assured that the stock information of their clients will not be sold to the hedge funds to make up for their offering of zero fees.

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