ST. LOUIS--(investing strategies for the coming 12 months.)--American investors and traders are watching various aspects of the current market environment, including the upcoming U.S. presidential election. Scottrade, Inc. research uncovered insights into how they will adapt their
“Through our in-person education seminars and one-on-one support, Scottrade’s branch office teams are educating clients on different investment strategies that they can employ as major market events unfold.”
With focus on issues ranging from inflation rates to the price of gas and groceries, American investors are reverting to behaviors and attitudes similar to those found ahead of the 2008 election, according to the seventh annual Scottrade American Investor Study.
“Investing is a passion for our self-directed clients,” said Kim Wells, Scottrade’s executive director of digital product development and chief marketing officer. “They watch current events and relate it to their risk tolerance, individual investments and future goals. This enables them to react to the momentum of the market.”
Stress over paying bills and rising health care costs crept back to 2008 levels, the 2012 study found. Today, 35 percent of investors, compared to 37 percent in 2008 are concerned with having enough money to pay their bills; and 51 percent of investors in 2012, compared to 50 percent in 2008, say rising health care cost contribute to their financial stress.
Investors today also have an identical 12-month plan to 2008, according to the studies. In both the 2008 and 2012 studies, 54 percent of investors reported plans to invest additional money in the next 12 months; 6 percent plans to decrease investments; and 40 percent plans to keep their investments about the same.
|Investment Plan in Coming 12 Months|
|I plan to invest additional money.||54%||54%||32%||40%||46%||54%|
|I plan to decrease the money I have invested.||3%||6%||8%||8%||6%||6%|
|I plan to keep my investments at about the same level.||43%||40%||60%||52%||48%||40%|
Q. Which of the following best describes your investment plan for the next 12 months?
“In 2009, the number of investors planning to invest more money hit its lowest point in the seven-year history of Scottrade’s study.” Wells said. “However, what we’ve seen since then is a steady climb back to 2008 levels. And this year’s study recorded the highest level of investor expectations for portfolio performance since the 2008 study.”
This year, 71 percent of investors expect their portfolios – excluding real estate holdings – to be up over 2011. In 2008, 85 percent of investors expected to record a gain over 2007. Between the two years, investor expectations sunk to record lows before starting to recover.
|Portfolio Performance Expectations Versus Previous Year|
|It will be up||85%||29%||47%||57%||71%|
|It will be flat||55%||25%||36%||22%||20%|
|It will be down a little||9%||14%||12%||8%||6%|
|It will be down significantly||1%||32%||5%||13%||2%|
Q. This year, how do you think your financial portfolio (excluding real estate) will perform versus last year?
When asked their views on the stock market in 2012 compared to 2011, 61 percent of investors said they expect it to be up. Of the remainder, a quarter expects the market to remain flat and 14 percent expects a decline.
Interestingly, in 2008, when asked the same question, 61 percent of investors predicted that the stock market would be down compared to 2007. The markets closed 2008 at record lows, with the Dow Jones Industrial Average down nearly 34 percent, the Standard & Poor’s 500 Index down 38 percent, and Nasdaq ending the year down 40 percent.
Scottrade Branch Manager Crystal Diaz-Granados assists self-directed clients each day. “With real-time reports of markets rising to multiyear highs, our clients are more connected today than ever before,” she said. “Through our in-person education seminars and one-on-one support, Scottrade’s branch office teams are educating clients on different investment strategies that they can employ as major market events unfold.”
About the 2012 Scottrade American Investor Survey
The study was commissioned by Scottrade and conducted online with members of Survey Sampling Inc.’s SurveySpot consumer panel. Fielded with a nationally representative sample of 1,289 respondents, including 962 investors with at least $500 in investments, between July 23 and August 6, 2012, the study examined attitudes, behaviors and trends related to investing. All participants were at least 18 years of age that were involved in making investment decisions in their households. Margin of error for the overall poll is +/- 3.1 percent at 95 percent confidence.
About Scottrade, Inc.
Investors who enjoy online stock trading will find value and personalized customer service at online investing services firm Scottrade, Inc. Founded in 1980, Scottrade enables clients to learn about online trading tools, stock market research and how to buy stocks online, many at just $7 per trade. With more than 500 nationwide branch offices, Scottrade has the largest branch network among online brokerage firms. To learn more about one of FORTUNE® magazine’s “100 Best Companies to Work For,” visit about.scottrade.com or www.scottrade.com and follow us on Facebook, Twitter, YouTube and Flickr. Member FINRA/SIPC.
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