Investors think the gyrating stock market will affect both the economy and their spending -- but they haven't given up on stocks. That's the conclusion from our July 25 Reader Survey, in which about 650 readers participated.
An overwhelming 82% said they think the recent swings in the market will affect the economy. And 62% said the uncertain market will prompt them to spend less of their income than before (though 34% remain undaunted).
Yet, 30% said they see the down market as an opportunity to buy more stocks, and 42% said they'll hold onto stocks they own, rather than sell. When asked what they would do with a sudden windfall, moreover, about 30% said they would put it into stocks, the same percentage that would opt for depositing it in a savings account. Some 21% would choose bonds, and 20% real estate.
Like just about everyone else, those who responded aren't quite sure where the market's bottom will be. Some 44% said they think the markets haven't bottomed yet, while 26% said they have, and 30% said it isn't clear yet.
Some 80% of those who participated said they own stocks outside of a pension plan.
Here are the complete results of the survey, which are unscientific since anyone who wished to could particpate:
Do you own and/or trade stocks outside of a 401(k) or other pension plan?
|Not anymore||39||6.06 %|
Do you think the recent swings in the market will have any effect on the economy?
|Don't know||38||5.87 %|
Have the swings in the market prompted you to spend less of your income than before?
|Not sure||22||3.42 %|
If you own stocks, are you more inclined as a result of the market's swings to:
|Buy more stocks||185||29.04 %|
|Sell your current holdings||118||18.52 %|
|Neither buy nor sell, but simply hold stocks||271||42.54 %|
|I don't own stocks||63||9.89 %|
Do you think that the markets have now hit bottom?
|Don't know||189||29.49 %|
If you experienced an income windfall today, where would you put the money?
|Savings account||191||29.84 %|
|Real estate||127||19.84 %|