Fewer investors fear a recession is imminent and many are even showing greater interest in investing in the markets again, according to the 2024 Q2 Quarterly Market Perceptions Study from Allianz Life Insurance Company of North America.

While many are still concerned the nation is heading for a recession, the number of those who believe one is "right around the corner" is starting to drop, the study found. Of the more than 1,000 people surveyed, 55% said they are worried a recession is right around the corner. That number is down from 64% a year ago.

Generation X is the most worried about the economy, with 62% believing a recession is coming, compared with 55% of millennials and 51% of baby boomers.

The confidence in the markets is showing itself in the respondents' attitudes toward investing. Thirty-seven percent of those surveyed said they were too nervous to invest in the market, which is down from 46% last year. 

Fifty-six percent of respondents said they would rather leave their cash on the sidelines, down from 62% last year, the survey found.

Investors are interested in the markets again because of a fear of missing out, according to Kelly LaVigne, vice president of consumer insights at Allianz Life.

However, while more people are looking to invest, there is still a significant number who are content to sit out because they are still worried about the economy, he said.

“I think that could be part of the sticky issue as far as why people are still thinking there could be bad news happening very quickly,” he said. “It still feels like inflation is high because prices are higher on certain items, [and] they didn’t go back down to their prepandemic prices.”

The survey found that 54% of those who have an advisor said they would prefer to meet with them more than they currently do.

Among millennials, 71% want to hear more from their advisor compared with 65% of Generation X and 37% of boomers, the survey found. In addition, 85% of all who participated said they have been in contact with their advisor in the past year.

Allianz questioned more than 1,005 individuals over the age of 18 through an online survey.