A new Gallup poll suggests that only 10 percent of America’s investors truly understand the power of the stock market. Results from the Wells Fargo/Gallup Investor and Retirement Optimism Index survey, which was conducted in June and July, show that only 11 percent of all investors call themselves “highly knowledgeable” about the stock market and 71 percent admit that they need investment help.
The survey was based on a sample of U.S. investors with $10,000 or more in stocks, bonds, mutual funds, or in a self-directed IRA or 401(k). Gallup experts say that despite the bull market, optimism about the stock market is falling, probably because of lack of awareness and understanding. Only 46 percent of U.S. investors view the stock market in a positive light.
“This raises important questions about investors’ ability to accurately assess market risk, and therefore to take advantage of the market to grow their wealth,” Lydia Saad of Gallup Economy writes. “The extraordinary performance of the stock market over the past 18 months has not fully registered with most investors”
The good news? At least most Americans realize they need professional help.
RicLager
Lager & Company, Inc.
