Economic Environment and Stock Market Conditions Impact Investment Plans

In the wake of the bruising budget battle and ongoing concerns about the national deficit and how to combat it, 24 percent of investors ranked the Economic Environment as the primary factor impacting their investment plans. This is the highest concern level over the Economic Environment since January 2009.  Twenty-two percent of investors said that Stock Market Conditions most impacted their investment plans. This is down significantly from last January, when 29 percent of investors responded similarly, but consistent with 2010 levels, which hovered between 21 and 22 percent.

     Millionaires were keeping a closer tab on Stock Market Conditions with a quarter saying that these most affected their investment plans, but Millionaires were slightly less likely than investors overall to say that the Economic Environment impacted their plans.

     Twelve percent of investors said that Household income is most impacting their plans, continuing an upward trend that began last January, when 9 percent of investors responded similarly, a dramatic spike from last October, when only 2 percent said Household Income was the most important factor impacting their investment plans.

     At 7 percent, Retirement was cited as the next most important factor impacting investment decisions.                

     Not surprisingly, the still-challenged Housing and Real Estate markets have a negligible impact on investors’ investment plans. The Political Climate, at 2 percent, has even less impact. This is down from 8 percent last October. It is possible that investors are tuning out the divisive rhetoric as Republicans and Democrats present their competing spending plans. Ultimately, it is not the partisan sniping that impacts their investment plans, but the government’s actions (or inactions).