US survey reveals anticipation without anxiety
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A stock market correction could be on the way but while a small majority of investors south of the border are expecting it, few are panicking.
Following significant gains for Wall Street, Bay Street and many other world markets, 54% of those polled by Wells Fargo and Gallup said that a correction for equities is likely by the end of 2017.
However, just 48% said that they are consulting their financial advisor ahead of a market slide and only 40% said they are actively rebalancing their portfolios.
Around a third of respondents said that they had heard only moderate media reports of a stock market correction with two thirds having heard little or nothing.
“One of the consequences of a protracted bull market is, unfortunately, investor complacency. With a market correction inevitable at some point, it’s important for investors to check their confidence with a comprehensive risk assessment to determine how a market correction could affect their overall investment strategies,” said Heather Hunt-Ruddy, head of Client Experience and Growth at Wells Fargo Advisors.
This complacency belies the impact that a stock market correction would likely have on investors with 56% saying that their financial situation would be hurt a lot (13%) or moderately (43%) by a downturn. Among high asset investors (U$100K+) this figure rises to 60%.
Most of the investors polled said that they were at least moderately prepared for a correction with 62% saying they would ride it out, 9% would exit the market and 27% would use it as a buying opportunity.
Investors want your advice and listen to it
The survey shows that around half of investors would turn to a financial advisor to help them mitigate the risk from a correction and most (55%) said they know where to get sound advice on investments and listen to it.
Following significant gains for Wall Street, Bay Street and many other world markets, 54% of those polled by Wells Fargo and Gallup said that a correction for equities is likely by the end of 2017.
However, just 48% said that they are consulting their financial advisor ahead of a market slide and only 40% said they are actively rebalancing their portfolios.
Around a third of respondents said that they had heard only moderate media reports of a stock market correction with two thirds having heard little or nothing.
“One of the consequences of a protracted bull market is, unfortunately, investor complacency. With a market correction inevitable at some point, it’s important for investors to check their confidence with a comprehensive risk assessment to determine how a market correction could affect their overall investment strategies,” said Heather Hunt-Ruddy, head of Client Experience and Growth at Wells Fargo Advisors.
This complacency belies the impact that a stock market correction would likely have on investors with 56% saying that their financial situation would be hurt a lot (13%) or moderately (43%) by a downturn. Among high asset investors (U$100K+) this figure rises to 60%.
Most of the investors polled said that they were at least moderately prepared for a correction with 62% saying they would ride it out, 9% would exit the market and 27% would use it as a buying opportunity.
Investors want your advice and listen to it
The survey shows that around half of investors would turn to a financial advisor to help them mitigate the risk from a correction and most (55%) said they know where to get sound advice on investments and listen to it.
