Investors in the stock market seem less willing lately to take on risk. In a new survey, 34 percent of investors said they have made less risky investments in the past three months than before. That number was up from 22 percent three months ago, the researchers noted.
Not surprisingly, a decreasing number of investors also said their outlook for investing in the stock market was optimistic. The share of optimists in the new survey was 47 percent, compared with 66 percent who felt optimistic about stock market investments just three months ago.
"The slow recovery of the United States economy, Europe and its ramifications on global and domestic economies, and the political situation in the U.S., are all weighing heavily on the minds of retail investors," said Tom Bradley, president of retail distribution at TD Ameritrade Inc., which conducted the research.
"Despite the bearish sentiment, our clients continue to monitor accounts at levels similar to last year, but they’re waiting for a little more clarity on key issues before they completely engage," Bradley said.
Investors also are still feeling the effects of the recession and are nursing regrets. Seventy-one percent said that, had they been able to go back to before the recession, they would have spent less and saved more. Furthermore, 65 percent said they would have lived within their means, and 60 percent said they would have taken more personal responsibility for managing their money.
Eighty-six percent of the respondents also said they have contributed the same amount as usual, or even more, to their IRA in the past half year.
This research was based on the responses of 1,035 investors. The research was conducted in an online survey by Research Now for the TD Ameritrade Holding Corp.