• by Jack Loechner , Staff Writer @mp_research, October 1, 2002

Confidence, Concern and Distrust Headline Individual Investors Attitudes

75% of U.S. individual investors are concerned about their investment portfolios, even as 74% remain confident about the U.S. economy, according to survey results published (9/25) by Standard & Poor's and BusinessWeek. 66% of active investors say they are more conservative in their investment strategies than a year ago, up from 58% who made the same statement when this survey was first conducted in November 2001. With 78% of investors having less trust in analysts' stock recommendations based on recent events, 44% say that they have changed their investment strategies as a result of recent events such as restated corporate earnings and stock manipulation.

Survey results highlight that trust is the single most important characteristic that investors look for in financial advisors (49%), followed by knowledge (34%). Trust is also the primary reason why investors remain with their financial advisors (64%). The degree of trust that investors feel toward their financial advisors is influenced most by the advisors' objectivity and by his or her knowledge regarding financial markets and investments. Spotlighting an opportunity for advisors to strengthen their relationships with clients, 65% of investors are concerned about the objectivity of investment advisors' recommendations.

Kenneth Ennis, managing director, Investment Services, Standard & Poor's says, "The... results highlight the differences in opinions between those who seek professional investment advice and 'do-it-yourselfers,' which have remained consistent with the sentiment we noted last fall."

Demographically, the study group of individual investors is more affluent than the general population. The median household income is $110,000, the median age is 48, 84% were male and 16% female, and 38% have financial advisors. You can find out more here.