Confidence Declines Among Affluent Investors
NEW YORK, May 11, 2011 /PRNewswire/ — In a reversal of trends, a new TNS survey shows a decrease in confidence among affluent investors. In its first decline in nearly a year, the TNS Investor Confidence Index declined to 113 in April (from a reading of 119 in Jan). Optimism over the direction of the economy and the stock market has eroded despite overall investor confidence remaining in positive territory.
According to Ellen Sills-Levy, SVP Investment Research at TNS, “In addition to the slower GDP growth in the first quarter, the past few months have seen a confluence of worrisome events: rising gas and crude oil prices, a near shutdown of the U.S. Government over fiscal policy, warnings that the U.S. debt ceiling will soon be reached, budget proposals that call for large cuts in spending, and both perceived and real inflation in everyday products. All these factors appear to be adversely impacting investor confidence.”
Despite concerns about the economy and the financial markets, affluent investors remain cautiously upbeat about their personal incomes and the financial health of their employers.
An overwhelming majority believe they will meet their retirement goals, with nearly two-thirds being confident the economy will not jeopardize their financial aspirations. And, in what should be welcome news for investment services firms, 8 in 10 now agree that their financial providers work with their best interests in mind.