NEW YORK, Aug. 27, 2019 /PRNewswire/ -- A new survey of 1,500 American investors between the ages of 35 and 65+ examines which recent geopolitical or economic event is most concerning them regarding the effects on their investment and retirement portfolios. The study was commissioned by SophisticatedInvestor.com, a financial magazine dedicated to providing useful information and investment research to sophisticated and accredited investors.
Survey Question & Findings
The survey asked 1,500 American investors the following question:
Which current geopolitical or economic event are you most worried about when it comes to the health of your investment portfolio (401k, IRA, etc.)?
- US - China trade war
- Increasing national debt
- Fed's interest rate cuts
- Hong Kong – China tensions
- Persian Gulf tensions
- Kashmir annexation (India/Pakistan tensions)
According to the findings of the survey, when asked which geopolitical or economic event was most concerning when it came to the effects on investments, an overwhelming 45.8% of all respondents stated the US-China trade war. Interestingly, when demographic filters were applied to the survey results specifically to those between 35 and 44, the percentage increased to 47.6%, and more so with males of this demographic to 48.2%.
Over the past couple weeks, financial markets have endured tremendous volatility primarily due to the escalating tensions between the US and China. That said, it comes as little surprise that nearly half of American investors in the survey cite the US-China trade war as the main concern regarding the wellbeing of their investment portfolios. Unfortunately, the general consensus amongst analysts is the market volatility will continue until the trade war is quelled between both nations.
"When it comes to the effects of this escalating trade war with the US and China on the average American's investments, the most important thing is don't panic. Only time will tell how long this will continue, but ultimately, a diversified portfolio is the best bet to keep one's investments safe during economic uncertainty," said Amine Rahal, CEO of Sophisticated Investor.
The next most popular response with 27.3% of respondents was the increasing national debt. Curiously, based upon the results of the survey, this is most concerning to those between 55 and 64 years old, as the percentage increases to 29.1% when demographic filters are applied. When females within this age bracket were specifically factored, that percentage soared to 34.1% - over a third of all female respondents approaching their retirement years.
Considering that the Congressional Budget Office (CBO) just released a report predicting that under current law, budget deficits are projected to average $1.2 trillion a year between 2020 and 2029, the results of the survey are unsurprising. In order to cut any future deficits, numerous conservative groups have been pushing Congress to reduce retirement programs and federal health care – deemed mandatory federal spending.
The next most poplar response to the survey question was the Fed's interest rate cuts, at 11%. A month ago, the Federal Reserve cut interest rates for the first time since 2008. Additionally, last week Fed Chair, Jerome Powell stated there was a possibility of another rate cut in September, based upon the escalating global economic turmoil of the past month.
Learn more about the survey and see a complete breakdown at:
SOURCE Sophisticated Investor