Stunned by trillions of dollars of losses in the financial crisis, Americans will be investing significantly less in the future, according to a new survey by AlixPartners. Forty-nine percent of the 1,000 people the consulting firm surveyed have either stopped or reduced investing in stocks or mutual funds, 26% have no intention to return to these bedrock financial vehicles in the next three years, and another 27% were unsure whether they had the endurance to return to the markets in that timeframe.
But the reactions were more muted among higher-income people and men, with only 21% of those earning more than $75,000 a year saying they have stopped investing altogether in stocks or mutual funds. Thirty-two percent of women said they are unlikely to return to the market, compared to 21% of men. AlixPartners says financial companies should restructure their offerings and marketing plans to address these bifurcations in the market.