Trust in the financial markets has improved, yet many Americans are still not investing. Thats according to a recent survey of 5,000 households by
As of May, fewer Americans are willing to describe the economy as bad, compared to just six months ago. Around 26% expect an improvement in the investment climate over the next six months, which is up slightly from 24% six months prior.
Despite a rise in the market, many investors remain reluctant to get involved. Only 22% of those surveyed said that they planned to buy stocks and bonds in the next six months, which was up slightly from 21% in January.
"A growing economy and public trust in companies and financial markets are essential in attracting more consumers to invest in stocks and bonds," said Lynn Franco, director of the Conference Boards consumer research center. "Although latest consumer readings show a small rise in overall levels of trust, it will take a stronger economy and an improved job market to spur a real turnaround in investment trends."
Additionally, the survey indicated that consumers have more faith in corporate earnings and profit projections now then they did at the beginning of January. They also believed that financial analysts were more trustworthy, as well as corporate management, auditing firms and boards of directors.
