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Chuck Jaffe: Proof Most Investors Are Clueless: David Giunta, Pres. Natixis Global Asset Management
French money management firm Natixis surveyed 9,550 individual investors world wide. It was the latest in a series of annual reports. Of the respondents, the U.S. and U.K. were most heavily represented, contributing 1800 respondents together.
The study found investors less willing to assume risk than in previous years and, therefore, less likely to meet their long term goals.
There is little, if any, attention paid to age demographics in the study - an omission I find curious, as age is an important determiner in willingness to assume risk.
Mr. Jaffe has his opinions as to the reason(s) behind the obvious disparity between expected/needed outcomes and risk assumed. He may or may not be accurate in his assessment. However, reluctance of individual investors to assume risk is nothing new. Except during periods of heightened market euphoria (like the tech boom of the 90s) we individual investors are a largely reticent group.
In the hunt for suspects as to why the growing reticence, I'll suggest three: lingering memories of the '07-'09 world-wide financial meltdown, aging baby boomers, and the incessant drum-beat of overly hyped and predominantly negative "news" from global cable news broadcasters.
Thanks Ted. Nice job providing all the related links. My response is largely to the third one. which references the actual Natixis study.
Comments
The study found investors less willing to assume risk than in previous years and, therefore, less likely to meet their long term goals.
There is little, if any, attention paid to age demographics in the study - an omission I find curious, as age is an important determiner in willingness to assume risk.
Mr. Jaffe has his opinions as to the reason(s) behind the obvious disparity between expected/needed outcomes and risk assumed. He may or may not be accurate in his assessment. However, reluctance of individual investors to assume risk is nothing new. Except during periods of heightened market euphoria (like the tech boom of the 90s) we individual investors are a largely reticent group.
In the hunt for suspects as to why the growing reticence, I'll suggest three: lingering memories of the '07-'09 world-wide financial meltdown, aging baby boomers, and the incessant drum-beat of overly hyped and predominantly negative "news" from global cable news broadcasters.
Thanks Ted. Nice job providing all the related links. My response is largely to the third one. which references the actual Natixis study.