This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

(Graphic: Charles Schwab)

According to a new study released today by Charles Schwab, consumers are far less likely to shop around for financial products than for household products such as TVs and appliances and the disparity is striking when it comes to buying bonds. Even among the 61% self-described bargain hunters, most of whom know that pricing on financial products vary greatly, confusion and inertia overcome the desire to get the best deal when buying bonds: while 51% will shop around for the best price on a gas grill, only 17% will do the same for a bond.

“In this low interest rate environment, consumers are hungering for yield. The more you pay for a given bond, the less yield you’ll earn on it,” said Peter Crawford, senior vice president at Charles Schwab. “The majority of retail investors are informed shoppers and know that bond pricing varies a lot from firm to firm, yet very few of them take the time to shop around. Our message is simple: investors shouldn’t feel resigned to pay blindly for bonds.”

Bargain Hunting For Bonds: How Investors Shop is a Charles Schwab study that explores the mindset and behavior of individual investors when shopping for consumer goods and financial products, with an in-depth look at attitudes towards bond buying. The online survey conducted by Koski Research was completed by 514 individual investors in the U.S. with a minimum of $100,000 in total investable assets. The study took place from May 16 to June 1, 2013.

Comparison Shop ‘Til They Drop

When shopping for household products and consumer goods, our survey indicates that investors are committed to finding a good deal. Study respondents say they are extremely likely to compare prices for cars (80 percent), airline tickets (77 percent), HD TVs (71 percent) and gas grills (51 percent). More than 90 percent of investors are confident in their ability to find the best price for these items.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs