Despite the fact that one out of every three investors experienced a 10% drop in the value of their fund last year and one out of six experienced a 20% loss or more, most investors appear to be sticking to their investments, according to a recent survey.
Only 15% of the 500 investors polled for the survey indicated that they have moved or plan to move their assets into bonds and just 14% said they have taken or will take a position in cash. Moreover, 21% said they plan to buy more stock and stock mutual funds.
Thirty-one percent of those polled indicated they would be more inclined to invest in an actively managed mutual fund rather than an index fund nearly one-third of investors said they are now less likely to invest in technology stocks or funds, according to the survey.
The survey, which was conducted by Neuwirth Research on behalf of the Forum for Investor Advice, also found that while a little more than half of those polled feel pessimistic about market performance in the coming year, an overwhelming majority are optimistic about long-term prospects for growth. In the next three years, 82% of those polled are optimistic and 87% are optimistic about market performance over the next 10 years.
Nearly one-fifth of those respondents who use a financial advisor indicated that they began consulting with an advisor in the past 12 months, said Barbara Levin, executive director of the Forum for Investor Advice, in a statement. 'I think this is recognition on the part of many investors that it's nice to have help when the bear growls,' she said.