Nervous investors cite Washington politics as their top cause for concern, survey finds

Nervous investors cite Washington politics as their top cause for concern, survey finds

More investors are feeling jittery about the market. And their No. 1 concern is the political landscape in Washington.

retail investor sentiment report released by Charles Schwab. The results are based on an online survey conducted in December, before the partial federal shutdown, which began on Dec. 22 and lasted for 35 days.

Lawmakers reached a deal on Friday to reopen the government until Feb. 15. President Donald Trump said over the weekend that another shutdown is “certainly an option.”

Schwab’s survey found that 52 percent of investors are feeling bearish, versus 41 percent a year ago.

Politics in Washington was the foremost concern cited by those surveyed, at 28 percent. That was followed by uncertainty due to market volatility, 12 percent; fears about a coming correction, 12 percent; and geopolitical or global macroeconomic issues, 11 percent.

Investors ages 40 through 55 and those who are retired are the most bearish, according to the survey.

And almost a third expect the next economic downturn will happen in the next year, as shown in the chart from Schwab below.

Thirty-nine percent of investors think the new Congress will impact their investment strategy.

The sectors investors currently favor most include information technology, communications and health care, the survey found.

Schwab’s survey included 861 of the firm’s retail clients who each had at least $2,000 invested.

More from Personal Finance:
Ready, set, file: Here’s what you need to know to file your 2018 tax return
This workplace perk could make it easier to save for emergencies
Here are the most in-demand jobs for 2019

Published at Mon, 28 Jan 2019 18:42:00 +0000

Be the first to comment

Leave a Reply

Your email address will not be published.


*