The current economic climate has curbed many investors’ appetites for risk, according to a recent survey released by TD Ameritrade Holding Corporation (NYSE: AMTD). When asked what, if any, changes they made to the way they’ve invested in the markets over the past six months, 34 percent of investors surveyed said they had taken on less risk. That’s compared to 22 percent who answered the same just three months ago.
Looking ahead to the next three months, 47 percent of investors said their outlook for investing conditions in the U.S. stock market is “optimistic,” compared to 66 percent who said the same back in April.
As investors pause, they reflect back on the things they wish they would have done differently. If they could go back to a time before the recession of 2008-2009, many investors would have changed the way they managed their money. Specifically:
- 71 percent report they would have spent less and saved more
- 65 percent report they would have lived within their means
- 60 percent report they would have taken more personal responsibility for managing their money
Perhaps attempting to pacify these regrets, investors continue to feed their retirement accounts. Eighty-six percent (86%) of them said they contributed the same amount as usual or more to their IRA over the past six months.“The slow recovery of the U.S. economy, Europe and its ramifications on global and domestic economies, and the political situation in the U.S. are all weighing heavily on the minds of retail investors,” said Tom Bradley, president of retail distribution, TD Ameritrade, Inc. (“TD Ameritrade”), a broker dealer subsidiary of TD Ameritrade Holding Corporation. “Despite the bearish sentiment, our clients continue to monitor accounts at levels similar to last year, but they’re waiting for a little more clarity on key issues before they completely engage.”