By Cory Investors Expect, But Not Sweating, a Stock Market Correction
This survey from a Wells Fargo/Gallup poll reported below by Business Wire has me a bit disappointing but I think sums up the flaws in investor’s mentality in general. Overall the results of this poll show to me that investors are all over the map and not able to step back and truly assess their investment and the investing climate.
Please have a read and let me know what you think as there are a lot of numbers that could be focused on. Here are some of the numbers that stood out to me.
54% of investors think the market could pull back and wipe out “significant gains” this year. – The this year mention is noteworthy as we only have 3 months left…
Only 18% are selling stocks because of the fear from the above point.
40% said they were not rebalanceing their portfolio. – While still room to run higher this is complacency.
“The poll found investor optimism surging to a 17-year high, largely due to increased confidence in the stock market”.
Most investors say they would respond to a correction by riding it out (62%). Just 9% would exit the market while 27% – the highest recorded for this trend – say they would see it as a buying opportunity. – More and more people now believe the Fed has your back and in the face of a major pull back. The problem is when so many people are “riding it out” where is the money to buy going to come from. It’ll be the big institutions again who get the cheap money and dump it into the markets.
Here is the final part I will highlight…
“The poll included two questions testing investors’ basic knowledge about the markets. While most investors were right on at least one, less than half (46%) answered both correctly.
When asked whether riskier investments tend to provide either higher or lower return potential over time than investments with less risk, 70% of investors correctly answer that riskier investments tend to provide higher potential returns. However 21% think the opposite is true, 5% say it depends and 4% aren’t sure.
Separately, when asked which of four types of investments have provided the best returns on average over the past 20 years, 64% correctly identified stocks. The most common incorrect answer was gold, named by 16%, while 8% named bonds and 6% CDs.”
Click here to visit the Business Wire original posting page.
… Here’s the full recap of the study…
56% say their financial situation would be hurt by it
One in four say they hardly ever look at portfolio
September 28, 2017 09:00 AM Eastern Daylight Time
ST. LOUIS–(BUSINESS WIRE)–A slight majority of U.S. investors, 54%, anticipate a market correction later this year in which the stock market takes back “significant gains.” While still a majority, this is down from 62% worried about such a correction in 2013 and 58% in 2014 – the previous high points.
Most investors are not acting proactively to …read more
Source:: The Korelin Economics Report
The post General Market Commentary – Thu 28 Sep, 2017 appeared first on Junior Mining Analyst.