The issue they were most optimistic about was taking care of their family's education, either because they were old enough that their kids had already graduated from college, or because they had squirreled away enough in 529 and other tuition savings plans to cover the educational costs.

As a group, they were very pessimistic about their jobs and careers over the next 12 months, though this issue also showed the largest increase in confidence between the short- and long-term numbers with a leap of almost 75 percentage points. The best explanation may be that although the current environment may place their jobs in jeopardy, there would likely be more stability and security around both employment and compensation in the future.

Last, there was the view on investment performance. Only about one in four thought that their portfolio would do well in 2003, showing just how far investors have come down in their expectations since the stock market peaked in early 2000 and even from this time last year. Even in 2005-2007, however, only just over half of the investors were optimistic about their portfolios, indicating that a sense of reality and perspective may have taken firm hold: that portfolio growth is not a given.

Hannah Shaw Grove is managing director and chief marketing officer of Merrill Lynch Investment Managers. Russ Alan Prince is president of the consulting firm Prince & Associates.

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