The Portrait of Today's Investor
“They are mad as hell, and they aren’t going to buy the dips anymore,” according to an article in the Wall Street Journal. The recent volatility in the marketplace has resembled a yo-yo on a string, causing investors to exit the stock market. They are angry, they are scared and they are filled with distrust.
A recent survey by Decision Research in Eugene, Oregon has revealed what the sentiment of today’s investor is. The survey is one of eight that has been conducted since the financial meltdown in the fall of 2008. Some of the findings were:
- 58% of investors felt that their futures would be “moderately” or “greatly” limited, up from 56% in March 2009.
- 59% of investors said they were “moderately” or “very” angry.
- 52% of investors said they were “moderately” or “very” fearful.
- 73% of investors said they worried “about money yesterday”, up from 56%, 2 ½ years ago.
- 11% of investors felt they had a “strong” or “very strong” degree of “influence or control” over their financial lives, as compared to 17% back in March 2009.
- 51% of investors said they hadn’t even checked on the performance of their portfolio.
- 10% of investors had changed their investments to reduce risk, versus 20% in September 2008.
- 87% of investors indicated that they had little or no trust in Congress, bankers or brokers.
Needless to say the mood of today’s investor is not much better than it was going back three years, when we were faced with the collapse of Lehman Brothers and Wall Street firms were merging right and left. With the litany of unknowns, all of the “mad as hell” investors are sitting on the sidelines too disgusted and flustered to be in the stock market, according to the article.