Forty-four percent of respondents said they were feeling “better off” or “much better off” financially at the end of 2010, compared to 30% in the third quarter. More than six in 10 (61%) of those surveyed also indicate Q4 2010 was a “good” or “very good” time to invest in equities, compared to 50% in Q3 2010.
Despite these overall improvements in Q4, confidence in making investment decisions remained static throughout 2010. In Q4, 39% of participants said they felt “extremely “or “very” confident by year-end.
“Our clients are beginning to feel better about their financial situations overall and are re-engaging in the market,” said Troy Stevenson, vice president at Charles Schwab. “Despite the growing economy, market risk and volatility continue to undermine investor confidence. We remain committed to helping our clients both regain their confidence and achieve their financial goals by providing personal interaction, educational opportunities, online tools, and high-quality products and advice.”
The Schwab Survey of Investor Confidence was conducted from December 9-27, 2010, and included 1,200 retail clients.