Market volatility over the past few months has given pause to Americans who worry that the swings could put a dent in their finances, according to a study by Allianz Life Insurance Company of America.
The findings in the Allianz Quarterly Market Perceptions Study indicate that Americans are increasingly uncomfortable with market conditions. Baby boomers, it said, are especially anxious about their nest egg (38 percent in the second quarter compared to 32 percent in the first quarter).
Only 31 percent of Americans say they are comfortable with market conditions and ready to invest, down from 33 percent in the first quarter, and 35 percent in 2018.
In addition, 48 percent of respondents in the second quarter say they fear a major recession is coming; that’s up two percent from the first quarter and four percent from 2018.
The study’s findings suggest that the volatility might make people shy away from investing in equities, with only 37 percent in the second quarter saying now is a good time to invest in the market and 41 percent in the first quarter.
Of note, the report found that millennials were more likely to say they were too nervous to invest right now (36 percent compared to 34 percent of Gen Xers and 28 percent of baby boomers).
The study found that interest in financial products that offer a balance of growth potential and protection is on the rise, with a third of people expressing interest in such a product, up from 27 percent last quarter. Furthermore, 72 percent of the respondents said it is important to have some retirement savings in a financial product that protects from loss, up from 68 percent last quarter.
In addition, those with investable assets of $200K plus are more likely to say they would give up potential gains for a financial product that protects a portion of their retirement (71 percent compared to 52 percent of respondent with less than $200K in investable assets).
The Allianz Life Quarterly Market Perceptions Study included three online surveys with a total of 2,814 respondents age 18 plus. They were conducted in April 2018, March and May.