Shutdown Impact: Investors Less Confident In Economy But Not Quick To Make Rash Portfolio Changes

Nearly three-quarters (72%) of investors surveyed say the government shutdown and impending debt-ceiling issue has begun to diminish their confidence in the economy’s recovery, according to a recent poll conducted by TD Ameritrade Holding Corporation (NYSE:AMTD).

While this issue appears to have impacted investors’ economic outlooks, many say that this sentiment won’t affect how they plan to approach their portfolios just yet. Forty-one percent say they haven’t made changes to their investments yet but may pull back if the issue continues. Another 37 percent of investors say they think the shutdown/debt-ceiling issue will pass quickly and therefore they haven’t taken action in their portfolios; 12 percent say they are taking advantage of opportunities as a result of the issue; and 10 percent moved some money to cash temporarily.

And just how will the issue end? One in four investors say it is very likely the government will default on its debt, while another 44 percent say it’s somewhat likely.

“Some investors likely aren’t adding positions or taking on new risk yet until there is a clear picture as to how the shutdown and debt-ceiling deadline will settle,” said JJ Kinahan, chief strategist at TD Ameritrade. “With about one million people furloughed from their government jobs there is concern that this could have an impact on retail sales, housing and durable goods.”

“The shutdown has brought with it renewed economic uncertainty, and many investors may have questions about how to adapt their positions for a variety of potential outcomes,” said Tom Bradley, president of retail distribution for TD Ameritrade. “It’s our objective to provide investors with relevant information and resources to help them answer these questions. We encourage investors to take advantage of the resources available to educate themselves and seek guidance or help, if necessary, before making their next move – whatever that may be.”

To help investors navigate their investments during this time, TD Ameritrade has made the following resources available:

  • A blog post on “4 Market Signals for Shutdown Survival”
  • Articles in TD Ameritrade’s investor publication, The Ticker Tape
  • A special webcast presented by Alec Young, S&P Capital IQ Global Equity Strategist. Alec discusses the government shutdown, as well as the debt ceiling and international investing. The webcast is archived and available free to the public for playback here.

Investors are encouraged to visit TD Ameritrade's website, which offers a number of free tools and resources to help them pursue their goals.

For the latest news and information about TD Ameritrade, follow the Company on Twitter, @TDAmeritradePR.

TD Ameritrade, Inc. ("TD Ameritrade") is a broker-dealer subsidiary of TD Ameritrade Holding Corporation (NYSE: AMTD).

About the Survey693 consumers participated in an online survey conducted by True North Market Insights on behalf of TD Ameritrade Holding Corporation on October 3, 2013 and offered their views on the federal government’s shutdown and impact on economic and investment conditions. The 693 survey respondents represent a random sample of the general population selected from a consumer panel of individuals in the U.S. who have access to the Internet. The margin of error in this survey is ±3.7%. This means that in 19 cases out of 20, survey results based on 693 respondents will differ by no more than 3.7 percentage points in either direction from what would have been obtained by seeking the opinions of all eligible individuals in the U.S. who are online. True North Market Insights and TD Ameritrade Holding Corporation are separate, unaffiliated companies and are not responsible for each other's products and services.

About TD Ameritrade Holding CorporationMillions 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 38 years. An official sponsor of the 2014 and 2016 U.S. Olympic and Paralympic Teams, 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.

Brokerage services provided by TD Ameritrade, Inc., member FINRA ( www.FINRA.org)/SIPC ( www.SIPC.org)/NFA ( www.nfa.futures.org).

Copyright Business Wire 2010

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