What Investors Said They Believe and Where They Get Their InformationWhen looking at respondents’ overall knowledge of investing, survey results show that 41% of investors believe reducing the federal bond-buying program will result in increased interest rates. The same percentage (41%) of investors does not know which would create a bigger loss to their portfolio: a 10% loss in the stock market or a 1% increase in long-term rates. Half (50%) of the investors said their primary source of investment information is their advisor, with 25% citing the financial media, 17% their investment plan, and 8% their gut instinct. Lessons Learned from the Bear Market of 2008-2009 Among the most significant lessons investors said they learned are to: stay disciplined (34%), be diversified (30%), avoid action on emotions (18%) and use a professional to help with investments (17%). Retirees were more likely to say they learned to use a professional (23%), while non-retirees were more likely to have learned to stay disciplined (41%). One-third of respondents said the 2008-2009 financial crisis is still a factor in how much stock they are willing to own. Of those who remain wary of the markets, one in five (21%) don’t plan to invest in stocks, while factors that may make them reconsider investing in stocks include sustained positive returns (36%), advisor recommendation (33%), reduction in political dysfunction (33%), or a pullback in the market (23%). How Investors Are Making Decisions For nearly half of respondents, the most important factor in making investment decisions is risk tolerance (47%). About one in five said the most important factor is income needs (20%), followed by time horizon (19%), and need for growth (14%). Expectations investors had about the role of their advisor included 29% who expect help in keeping them disciplined to their plan, 27% who expect frequent communications about their investments, and 16% who expect education on investing principals.
About Wells Fargo & Company (Twitter @WellsFargo)Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.5 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 locations, 12,000 ATMs, and the internet (wellsfargo.com), and has offices in 36 countries to support customers who conduct business in the global economy. With more than 264,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 25 on Fortune’s 2013 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially. Wells Fargo perspectives are also available at blogs.wellsfargo.com. About TNS TNS advises clients on specific growth strategies around new market entry, innovation, brand switching and customer experience management, based on long-established expertise and market-leading solutions. With a presence in over 80 countries, TNS has more conversations with the world's consumers than anyone else and understands individual human behaviors and attitudes across every cultural, economic and political region of the world. TNS is part of Kantar, one of the world's largest insight, information and consultancy groups.
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