The Markets March 4, 2010

Adviser Confidence in Economy Declines

In February, registered investment advisers’ (RIA) confidence in the economy and stock market was down 2% from January, according to Rydex|SGI AdvisorBenchmarking.
Reported by

While Rydex|SGI’s Advisor Confidence Index (ACI) was up in January, adviser confidence retreated slightly in February, as the U.S. economy showed a lack of job growth, according to the index report. When asked which areas of the economy are causing the largest concern, most RIAs (65%) are most concerned about unemployment, followed by the budget deficit (50%).

Advisers showed the most pessimism for the current economic outlook and the next sixth months, but an increased optimism for the 12-month economic outlook. More specifically, the ACI found the following:

  • current economic outlook (-6.22%)
  • six-month economic outlook (-2.35%)
  • 12-month economic outlook (+3.84%)
  • stock market outlook (-4.32%).

Rydex surveyed 356 RIAs.

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The Markets March 4, 2010

Schwab: Investors Focused on Growing Savings

More investors are focused on growing their retirement savings rather than protecting it, according to a survey by Charles Schwab & Co.
Reported by

Schwab’s latest Real Life Retirement quarterly pulse survey found that investors remain uncertain about the economy. More than half (54%) expect another dip before the stock market settles. Despite uncertainty, 46% of respondents are focused on growing their retirement savings, compared to 29% who are focused on protecting.

Unsurprisingly, younger investors are the most focused on growth. More than half of Americans ages 18 to 32 (58%) and 33 to 44 (54%) consider multiplying retirement assets to be their top priority in preparing for retirement. Across all age groups, men and women have slightly different attitudes: More men than women (50% versus 43%) think it is most important to boost their current retirement savings, and women are more likely than men (32% versus 26%) to concentrate on protecting the savings they already have.

However, many investors might not be saving enough. One-fifth of those surveyed are saving nothing at all for retirement. Nearly three in 10 investors agreed that they should contribute 10% of their income to retirement, but 60% are allocating less.

Kelton Research surveyed U.S. adults between January 26 and Febuary 1 via phone.

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