Forget Investing Say Consumers
By George Anderson
A recent survey asked consumers if they had $1,000 to spend did they think it would be a good idea to invest it in the stock market.
Nearly two out of every three said they thought it was a bad idea to invest in stocks, according to the poll conducted by the Associated Press by ICR/International Communications Research, Media, Pa. More than half of those who have invested, think it was a bad idea, as well.
Only 29 percent of those responding to the survey believed it was a good idea.
According to the survey, four in 10 respondents said they have felt the affect of the downturn in the market. Only 10 percent, however, indicated that they have been hurt financially in a “major way”.
Moderator’s Comment: What affect has the downturn in
the equities market had on retailing? What will happen if this reluctance to
invest in the market persists?
The poll conducted for the AP might actually have
been understating the issue. Roughly 42 percent of respondents to the study
said they have stock or mutual fund investments.
According to the publication, Investment News,
approximately half of all U.S. households (52.7 million) owned equities at the
start of 2002. This was up more than seven percent from 1999 numbers. [George
Anderson – Moderator]