Half of Investors Have Taken No Action to Reevaluate Their Investment Approach Against the Backdrop of a Shifting Investment Landscape
"As long-term risk/return expectations have shifted with an increase in inflation, the rise of
The "Helping Meet Investor Challenges Study" surveyed 1,250 investors with
You can view the survey results, fact sheet and infographic here: https://im.bnymellon.com/us/en/intermediary/perspectives/dreyfus-investor-survey-brief.jsp
Older Investors Ignoring Past Market Precedents in Adjusting Portfolios
Older investors have had an opportunity to weather a variety of stock market highs, such as the bull markets from 1987-2000 and 2009 to the present, and lows, such as the savings and loan crisis in the 1980s, the stock market crash in 1987 and most recently the financial crisis of 2008. Yet, even with this past knowledge in the rearview mirror, the survey reveals:
- Sixty-one percent of investors aged 55+ indicated they have not or will not reevaluate their investment approach in today's existing investing environment.
In comparison, younger investors who experienced the 2008 market meltdown and who began their savings efforts in the earlier part of their careers demonstrated a forward-thinking approach to reevaluating their portfolios. This generation of investors between the ages of 21 and 34 indicated the following:
- Sixty-five percent had already evaluated their investment approach, compared to just 51% of those aged 35-54 and 39% of those aged 55+.
- A greater percentage of younger investors between 21-34 (63%) also indicated they had worked with an advisor in reevaluating their investments, while only a third (38%) of those 55+ had evaluated their investments with an advisor.
"Our survey revealed that younger investors have demonstrated in greater numbers a more proactive approach to reassessing their portfolios and seeking out their advisors for counsel, some of whom might lack the historical market experience and accumulated wealth of older investors," said
Mass Affluent Investors Slow to Take Action on Their Portfolios
The survey also looked at the investment actions taken by mass affluent investors, those who had investable income between
- Forty-three percent of the total mass affluent investor audience had not reevaluated their investment approach in this new investment environment.
- Thirty-nine percent of mass affluent investors working with an advisor had not reevaluated their investment approach.
Investors Look to Advisors in Navigating the Way
Despite the last eight years of a
Yet a majority of investors remained on the sidelines, the survey found:
- Six in ten investors (60%) without a financial advisor are most likely to put off their plans to address today's market challenges, with only one-quarter (24%) saying that they plan to address challenges they face at some point in 2017.
- Seventeen percent said they don't have any plans to reevaluate their investment approach.
Santero added, "We believe investors who don't work with a professional advisor could greatly benefit from the insights an advisor can provide in tailoring a goals-based approach for their individual circumstances against today's investing environment of uneven economic growth. Options might include diversifying their
Those individual investors who worked with an advisor had a greater likelihood of adjusting their portfolios. The findings revealed that:
- Almost three-quarters (65%) indicated they had reevaluated their investment approach, compared to two in five (40%) who had not worked with an advisor.
- Nearly three-quarters (73%) of advisors' clients changed their approach as a result of advice.
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Risks:
Equities are subject to market, market sector, market liquidity, issuer, and investment style risks, to varying degrees. There is no guarantee that dividend-paying companies will continue to pay, or increase, their dividend. Bonds are subject to interest-rate, credit, liquidity, call and market risks, to varying degrees. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes and rate increases can cause price declines. Investing in foreign denominated and/or domiciled securities involves special risks, including changes in currency exchange rates, political, economic, and social instability, limited company information, differing auditing and legal standards, and less market liquidity. These risks generally are greater with emerging market countries.
Helping Meet Investor Challenges Study Methodology
About Dreyfus
Established in 1951, Dreyfus is among the pioneers of
Dreyfus has four principal businesses, each providing a unique set of products and services to a diverse range of customer segments. These businesses are:
- the Intermediary business, which distributes Dreyfus' funds through broker-dealers;
- the Institutional Investor business, which distributes investment solutions from select
BNY Mellon investment boutiques to institutional investors; - the Cash Investment Strategies division, one of the industry's leading institutional managers of money market strategies;
- and Dreyfus Direct, a direct-to-consumer business which enables clients to enjoy the convenience, safety, and financial benefits of having their pay,
Social Security , pension check or tax refund directly deposited into theirBNY Mellon /Dreyfus mutual fund account.
About
This press release is qualified for issuance in the
Ben Tanner
212 635 8676
[email protected]
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/half-of-investors-have-taken-no-action-to-reevaluate-their-investment-approach-against-the-backdrop-of-a-shifting-investment-landscape-300475529.html
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