Three surveys released today indicate that investors expectations for the financial markets have recently declined. Investors outlooks in June fell to their lowest levels since September and their second-lowest levels since 1996, when
Today, however, only 38% of investors said they are optimistic for the prospects of the financial markets over the next 12 months, down from 46% in May. Still, investors with less than five years of experience in the markets said they expect a 15.9% return in their portfolio over the next year, compared with a 7.0% return that more experienced investors expect.
Meanwhile, another survey released today by
"In times of economic turbulence and market volatility, consumers value investment firms that have proven track records and give advice [they] can rely on," said Ellen Guion, senior research manager of investment services at J.D. Power.
Finally, more than likely a result of investors receding confidence in the markets and their own ability to make investment decisions, a third survey released today indicates that they are not saving enough in their 401(k) plans. By surveying more than 100 companies at its annual retirement group conference,
"It is clear that the current economic climate is driving concerns among retirement plan sponsors," said Mark Feuer, chief operating officer of Merrill Lynchs retirement group. "Employees will not be able to achieve retirement security on investment returns alone. Savings rates need to be increased."