For Immediate Release: March 11, 2003
Contact: press@decisionanalyst.com
Confidence In Stocks, Mutual Funds Halved In Past Year,
Decision Analyst Survey Shows
The Middle-aged And Women Most Likely To Offer Downbeat Assessments
Arlington, Texas – Confidence in the stock market and mutual
funds has tumbled by almost half in the past year, according to a nationwide
Internet study by Decision Analyst, Inc., a leading international marketing
research and marketing consulting firm.
As part of its regular Economic Index survey, conducted monthly among a sampling of
several thousand households balanced by gender, age, and geography, Decision
Analyst asks respondents if they expect stocks and mutual funds to increase or
decrease in value over the next six months. The February data reveals that just
23.4 percent of respondents expect values to rise, 19.6 percentage points fewer
than in February 2002.
A breakdown of the survey findings by participants’ gender reveals that such
confidence as does exist is mostly to be found in the male population. Almost
one-third (32.0 percent) of males expect the value of stocks and mutual funds to
increase, more than double the proportion of females (14.9 percent) expressing
similar views
Age factors also impact on confidence, with those in their middle ages (35-44 and
45-54) least likely to have a positive view of future prospects. The number of
respondents in the 35-44 age range expecting values to increase (19.6 percent)
is more than 10 percentage points fewer than among those approaching or in
retirement (28.9 percent of the 55+ respondents).
“This survey’s findings demonstrate just how little
confidence there is in the economy right now,” said Jerry W. Thomas, President
and CEO of Decision Analyst. “A lot of those people who invested heavily in the
stock market and mutual funds in the 1980s and 1990s are now strongly
pessimistic about the future of those investments. That’s having a significant
impact on their overall confidence, including their spending habits. It reminds
us that a depressed stock market can exert a substantial negative force on the
overall economic picture.”
Methodology:
The Decision Analyst Economic Index is based on a monthly Internet survey of
several thousand households balanced by gender, age, and geography.
The survey is conducted during the last 10
days of each month, delivering a snapshot of current U.S. economic activity, as
seen through the eyes of representative consumers. The Index has a margin of
error of plus or minus three percent.
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