While 2012 was a tough financial year, many Americans feel optimistic that 2013 will be brighter both personally and economically. In fact, 43 percent of Americans are optimistic about 2013 and believe the economy is on the rebound, according to a new 2013 Outlook Survey released by TD Ameritrade, Inc. (“TD Ameritrade”), a broker dealer subsidiary of TD Ameritrade Holding Corporation (NYSE:AMTD). 1 That’s nearly double the 24 percent who last year said they were optimistic about 2012. 2 Just one-third (34%) of Americans are uncertain about where the economy is headed 1, compared with the 52 percent who were uncertain one year ago. 2 Additionally, 45 percent of Americans expect 2013 to be a better financial year than 2012 in terms of their personal financial situation. 1 This increase in optimism and clarity comes at a time of otherwise great uncertainty as the country faces the looming fiscal cliff deadline. Many investors are left wondering what the effects of the cliff – no matter what the resolution – will mean for the markets, economy and their own financial plans. What the Fiscal Cliff Means to Investors and Independent Registered Investment Advisors While it’s impossible to predict the outcome of an anticipated fiscal cliff resolution, understanding its potential impacts can help provide additional clarity about the markets and economy in the coming year. Some of TD Ameritrade’s most experienced professionals weigh in: J.J. Kinahan, chief derivatives strategist, TD Ameritrade on active traders: “The impending fiscal cliff presents a lot of questions for traders – particularly how spending cuts or tax increases may affect different industries – which can open or close the door to potential trading opportunities. This could add some volatility to the markets and could result in increased trading activity toward the end of the year.” Tom Bradley, president of retail distribution, TD Ameritrade on longer-term investors: “Even with the presidential election behind us, longer-term investors have slowed their trading pace – waiting for additional clarity from Washington, the markets and the economy. However, they remain engaged – logging in to check their accounts and planning their allocations around new tax and regulatory policies to make best use of their capital in the new year.” Tom Nally, president, TD Ameritrade Institutional on independent registered investment advisors (RIAs): “Independent registered investment advisors are working to get out in front of the fiscal cliff, addressing their clients’ concerns and preparing for potentially bigger tax burdens and increased market volatility. RIAs anticipate not only steeper taxes for the wealthy, but also curbs on deductions. Regardless of political gridlock or any fiscal cliff deal outcomes, RIAs continue to look out for the long term, keeping in mind time horizons, risk tolerance and individual client goals.” TD Ameritrade to Host Free Webcast on Fiscal Cliff Impacts, Dec. 17 at 4 p.m. EST To help investors consider how they will adapt their positions for a variety of potential outcomes, on Monday, December 17 th at 4 p.m. EST, TD Ameritrade will present a special webcast – “The Fiscal Cliff and its Impact on the Financial Markets.” Alec Young, S&P Capital IQ Global Equity Strategist will suggest ways for investors to prepare for several scenarios, based on what the federal government may decide to do. The free webcast will cover:
- How the fiscal cliff formed and which laws are in jeopardy
- The potential economic impact if the fiscal cliff is resolved – and if it isn’t
- An overview of each political party’s position and the current state of fiscal discussions
- The potential impact to investors, including tax changes
TD Ameritrade does not provide tax advice. Please consult your tax-planning professional with regard to your personal circumstances.Alec Young and S&P Capital IQ, as well as Head Research and ORC International, are separate from and not affiliated with TD Ameritrade, which is not responsible for the services, policies, or commentary of these entities. About TD Ameritrade Holding Corporation Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (NYSE: AMTD) technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how—bringing Wall Street to Main Street for more than 36 years. TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade’s newsroom or www.amtd.com for more information. About TD Ameritrade Institutional* TD Ameritrade Institutional ‡ is a leading provider of comprehensive brokerage and custody services to over 4,000 fee-based, independent registered investment advisors and their clients. Our advanced technology platform, coupled with personal support from our dedicated service teams, allows investment advisors to run their practices more efficiently and effectively while optimizing time with clients. ‡TD Ameritrade Institutional is a division of TD Ameritrade, Inc., a broker dealer subsidiary of TD Ameritrade Holding Corporation. *Brokerage services provided by TD Ameritrade, Inc., member FINRA ( http://www.finra.org) SIPC ( www.SIPC.org) /NFA ( www.nfa.futures.org). 1 About the 2013 Outlook Survey An online survey was conducted among N=1,000 Americans 18+ years old from November 16-17, 2012, by Head Research on behalf of TD Ameritrade, Inc. Sample was drawn from major regions in proportion to the U.S Census. The statistical margin of error for overall survey results in this study is +/- 3% (assumes panelists do not differ from non-panelists, and respondents do not differ from non-respondents). This means that, in 19 out of 20 cases, survey results for questions based on all survey respondents (N=1,000) will differ by no more than 3% in either direction from what would have been obtained by measuring the opinions of all adult Americans.
About Head ResearchHead Research is a division of Head Solutions Group (U.S.) Inc., a leading market research partner for Financial Services companies in North America. With offices in New York, Toronto, and Montreal, Head delivers the deep customer insights that increase institutional knowledge and propel business action. 2 About the 2012 New Year’s Survey These results are based on a telephone survey conducted in ORC International’s CARAVAN® on behalf of TD Ameritrade. One thousand six (1,006) adults participated in a telephone survey conducted October 13-16, 2011. The margin of error in this survey is ±3.1 percentage points. This means that in 19 cases out of 20, survey results based on 1,006 respondents will differ by no more than 3.1 percentage points in either direction from what would have been obtained by seeking the opinions of all adults living in the United States age 18 and older. ORC International and TD Ameritrade are separate, unaffiliated companies and are not responsible for each other's products and services. About ORC International ORC International is a leader in global market research with expertise in Information Technology and Telecommunications, Healthcare, Financial Services, Public Services and Consumer Behavior. For more information, visit www.opinionresearch.com.