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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Federated Investors, Inc. Survey May Signal The End Of The Cautious Investor

PITTSBURGH, Sept. 16, 2013 /PRNewswire/ -- According to the 2013 Investor Mindset Survey, high-net-worth investors will begin to make a decisive shift in their portfolios over the next 12 months with 24 percent planning to invest more in equities over the next year versus only 10 percent for bonds.

Investors have been cautious since the market events of 2008, but the survey may signal the end of this cautious approach as nearly four times as many high-net-worth investors plan to add equity and strategies balanced between equities and fixed income to their portfolios as compared to bonds. In addition to investors, the survey indicates that advisors are even more likely than investors to be focused on equities as their recommended approach over the next year. 

Although a key driver for both high-net-worth investors and advisors is a desire for consistent income, which historically meant a focus on bonds, surprisingly, 48 percent of investors chose equity and balanced strategies as "top of mind" when thinking of income, while only 30 percent of investors chose bonds.

This new willingness to try a more balanced approach is reflected in investors' responses when asked to describe their investment style.  An overwhelming 84 percent of investors described themselves as having a "balanced" or "progressive" risk appetite—a moderate approach to risk. Yet a third of advisors described their clients as being "secure" or "cautious" in their risk appetite, while only 9 percent of investors described themselves this way.

"Few surveys take such an in-depth look at the same questions from the perspective of both investors and advisors," said Linda Duessel, senior equity strategist at Federated Investors. "We wanted to find where advisors and their clients are united and where they differ. The study provides compelling new evidence that the much-anticipated 'Great Rotation' has begun to take place, though it has been slow to materialize."

With the financial meltdown still weighing on their psyches, investors cited low investment returns in their personal portfolios as a concern, but they were optimistic about the prospects for the U.S. economy with 56 percent of investors and 68 percent of advisors expecting the U.S. economy to improve over the next 12 months. 

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,958.74 -23.85 -0.14%
S&P 500 1,977.63 -1.28 -0.06%
NASDAQ 4,453.5720 +8.6630 0.19%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs