NEW YORK, June 26, 2019 /PRNewswire/ -- A new survey of 2000 Americans between the ages of 18 and 65+ examines the asset classes which investors had the most confidence in yielded some interesting results. In fact, the survey revealed that respondents are most confident in the US dollar and the stock market, and least confident about commodities and cryptocurrencies, despite both the prices of gold and bitcoin hitting record highs.
At present, economic indicators are all pointing to a thriving US economy. US GDP has been strong, and both the US Dollar Index and US financial markets have both been on the rise. Moreover, these economic indicators are best reflected in which asset classes hold the most confidence for investors.
The graph below reveals which asset classes investors have the most confidence in at the moment:
According to the findings of the survey, when asked as an investor which asset class they were most confident in at the moment, 23.4% of the 2,000 respondents indicated the "US dollar". Yet interestingly, when demographic filters were applied, that percentage skyrocketed to 36.9% of respondents between the ages of 18 to 24. Younger investors in general, appeared to be most confident in the US dollar, with 27.9% between 18 and 44 years old selecting that response.
Yet, for older investors, stocks were the asset class that provided the most confidence. When demographic filters were applied to the survey results, 24.4% of respondents 45 and over selected stocks, making it the most popular response.
"These survey findings don't surprise me in the least. The US economy is booming – every economic indicator is pointing to that fact. Therefore, investor asset confidence will mirror a strong economy," stated Amine Rahal, CEO of Sophisticated Investor.
Another interesting take-away from the survey results: 21.4% of respondents indicated that real estate was what they were most confident in as an asset class. However, when demographic filters were applied to the results, 22% of respondents between 55 and 64 years old selected this option – making real estate the most popular response for this demographic.
As an asset class, 20% of those surveyed indicated stocks made them most confident. Yet, with regards to demographics, nearly a third of seniors 65+, 29.2% selected this asset class, making it the number one choice.
The fourth most popular response, coming in at 14.6%, was fixed income. It would appear that investors hailing from all representative demographics were drawn to the lower, but steady gains provided by fixed income investments.
Another smaller group, 8.7%, selected "other alternative assets". Examples of this investment category include venture capital, hedge funds, wine, and art.
Perhaps the most intriguing results that can be gleaned from the survey findings are the last two responses. Commodities and cryptocurrencies ranked rock bottom, coming in at 7.4% and 4.6%, respectively, despite both asset classes performing well recently. These percentages seemed to be indicative of the overall confidence that investors have in the US economy. Commodities such as gold are traditionally the investment of choice during an economic downturn. Cryptocurrencies are a relatively nascent and highly volatile asset class compared to the other options, therefore investors would less inclined to invest in something they weren't as familiar with when the US economy was flourishing.
Factoring in all economic indicators, the US economy is booming. Everything from the GDP, to the latest employment data and wage growth are all pointing to a healthy economy. The US economy is doing well and the economic indicators are demonstrative of that fact. As a result, the most popular asset classes of choice, are indicative of investors being extremely confident in the current trajectory of the US economy.
Learn more about the survey and get a more detailed breakdown of the results at: https://sophisticatedinvestor.com/new-survey-reveals-investors-extremely-confident-us-economy/
SOURCE Sophisticated Investor