As inflation persists at historic levels, Americans with money in the stock market are allocating more of their dollars toward everyday essentials instead of investing, a new study shows.
One in four retail investors are putting less into the stock market so they can cover expenses like groceries, gasoline and housing, according to a Wells Fargo survey of U.S. adults. Furthermore, they're so nervous about their investments that 42% want to cash out, and nearly a third would deplete their IRA or 401(k) accounts if they could do so without tax penalties.
The findings underscore how Americans are struggling to keep up with persistently high inflation, forcing many to load up on
Half of male investors and 27% of women say they're "doomscrolling," or continually checking their investments on their phone when the market is down. Two thirds say lower inflation would make them feel more confident — indeed, the latest consumer price data was met with an exuberant rally when it came in
The survey, which polled 2,000 adults from Sept. 21-27, found that lower interest rates, cheaper gas prices and an end to the war in Ukraine would also bolster sentiment.
On the flip side, the findings showed that 18% of investors are cutting back in some areas to take advantage of lower stock prices. More than half pointed to entertainment, while others sacrificed personal spending, such as clothing,
