June 25, 2024 Newswires

Americans Less Fearful About a Recession and Investing

Business Wire

Yet Allianz Life study finds many want more interaction with their financial professional

KEY FINDINGS:

55% of Americans worry a major recession is right around the corner, down from 64% at this time last year
Just 37% say they are too nervous to invest in the market right now
54% say they would prefer to meet with their financial professional more frequently than they currently do

MINNEAPOLIS--(BUSINESS WIRE)--
With the market making steady gains across the first half of the year, Americans are feeling more comfortable with the economy and less nervous about investing, according to the 2024 Q2 Quarterly Market Perceptions Study* from Allianz Life Insurance Company of North America (Allianz Life).

Compared to this time last year, fewer Americans are worried about an imminent recession. The percentage who worry that a major recession Is right around the corner is down from 64% in Q2 2023 to 55% in Q2 2024. More Gen Xers (62%) than boomers (51%) or millennials (55%) worry about a recession right around the corner.

At the same time, fewer Americans feel pessimistic about the market. The number who say they are too nervous to invest in the market right now has fallen from 46% in Q2 2023 to 37% in Q2 2024. Black/African American (43%) and Asian/Asian American respondents (44%) are more likely to be too nervous to invest than white (36%) and Hispanic (38%) respondents.

Also, fewer Americans are leaving cash on the sidelines. The number who would rather have their money sit in cash than endure market swings has dropped from 62% in Q2 2023 to 56% in Q2 2024. Millennials (61%) and Gen Xers (57%) are more likely than boomers (48%) to prefer having their money in cash.

“While it’s encouraging that many people are feeling more comfortable with the market, it’s important to remember that setting yourself up for future financial stability is done over the long run,” said Kelly LaVigne, VP of Consumer Insights, Allianz Life. “Don’t get distracted by the whims of the market. You want to have a financial strategy that accounts for risks like market volatility but does not get sidetracked by short-term unpredictability.”

Americans seeking more interaction with financial professionals

As Americans feel more comfortable with the markets, they are looking to meet with their financial professional. More than half (54%) of Americans who have a financial professional say they would prefer to meet with them more frequently than they currently do. In particular, millennials would like to meet to discuss their finances. Nearly three in four (71%) of millennials say they would prefer to meet with their financial professional more often, compared to 65% of Gen Xers and 37% of boomers.

The vast majority (85%) say they have been in contact with their financial professional in the last year.

*Allianz Life conducted an online survey, the 2024 Q2 Quarterly Market Perceptions Study in May 2024 with a nationally representative sample of 1,005 Respondents age 18+. The study included an oversample of respondents who identified as Black/African American (277 responses); Hispanic (265 responses); Asian/Asian American (265 responses).

About Allianz Life Insurance Company of North America

Allianz Life Insurance Company of North America, one of the Ethisphere World’s Most Ethical Companies®, has been trusted since 1896 to help millions of Americans prepare for financial uncertainties and retirement with a variety of innovative risk management solutions. In 2023, Allianz Life provided additional value to its policyholders via distributions of more than $13.73 billion. Allianz Life is a leading provider of fixed index annuities, registered index-linked annuities, and fixed index universal life insurance. Additionally, Allianz Investment Management LLC (AllianzIM), a registered investment advisor and wholly owned subsidiary of Allianz Life, offers a suite of exchange-traded funds (ETFs). Allianz Life and AllianzIM are part of Allianz SE, a global leader in the financial services industry with approximately 157,000 employees in more than 70 countries. Allianz Life is a proud sponsor of Allianz Field® in St. Paul, Minnesota, home of Major League Soccer’s Minnesota United.