Consumer spending, Economy, Housing Market

John Hancock Investor Sentiment Index drops amid disinterest in stocks

logoFinancial services firm John Hancock Financial announced on Tuesday that its Investor Sentiment Index fell six points from its record high in the third quarter as a result of investors’ increasingly negative attitude towards investment in stocks.

The index is a survey of affluent investors who are polled and asked about their thoughts and feelings on the economic climate, what is currently a good or bad investment, and confidence in reaching financial goals.

While 62 percent of investors said stocks were attractive in the second quarter, only 55 percent said it is a good time to invest in stocks during the third quarter. Bonds fared no better, with only 18 percent of investors expressing interest.

Attitudes surrounding home ownership, however, remain positive, with approximately two-thirds of investors saying it is a good time to invest in residential property.

Seventy-five percent of investors indicated that they are saving for retirement using a workplace retirement plan, while just as many are saving for retirement on their own. A majority of investors indicated that they think now is a good time to invest in 401k plans and IRAs.

Most investors — approximately 60 percent — choose target date or target risk funds when available, citing the simplicity of investing in target funds. Half of investors said they are better off financially than they were two years ago, while 50 percent said they expected to be in a better financial position in two years.

“While they are saving and investing and feeling relatively optimistic about their present financial situation, investors indicated they are worried about the future and their retirements,” John Hancock Chief Economist Bill Cheney said.

Comments are closed.