On August 26, 2019, sophisticatedinvestor.com released the results of a survey they conducted with 2,000 US investors. In the survey, respondents were asked which geopolitical or economic event they felt was most concerning where the health and safety of their investments were concerned. They surveyed men and women between the ages of 35 to 65+ from coast to coast. Here are the top 5 things investors are worried about today.
Top 5 Things Investors Are Worried About Today
Number One Thing Investors Are Worried About Today
Not surprisingly, 45.8% of those surveyed said the number one concern was the increasing tensions in the US-China Trade War. Let’s break the numbers down by demographics. For those between the ages of 35 – 44, the percentage increased to 47.6%. And among men of that age, the percentage increased to 48.2%. This isn’t surprising since most of that age group haven’t lived through any real trade tensions before. The unknown is always more frightening than something you’ve already experienced.
Number Two Thing Investors Are Worried About Today
The second highest concern was the increasing national debt. 27.3% of those surveyed indicated that this issue caused them the most worry. Especially in light of the latest CBO projections from August 21st. It suggests the US national debt held by the public is growing faster than anticipated and may reach $1 Trillion by next year. The demographic breakdown of this subject is quite interesting. Of those nearing retirement age between 55 and 64, the percentage increased to 29.1%, and the percentage among females in this demographic group was an astounding 34.1%. That means that a more than a third of all female respondents approaching retirement to think this is the most pressing issue where their investments are concerned.
Number Three Thing Investors Are Worried About Today
Coming in at a distant 3rd place with 11% of survey respondents were Federal Reserve interest rate cuts. This was their biggest worry where their investments are concerned. As you know, the Fed cut the overnight rate by .25% in July to try and hold the potential for an economic downturn at bay. And, last week Chairman Jerome Powell indicated that there is a potential for another rate cut in September due to increased global economic turmoil.
Fourth Thing Investors Are Worried About Today
Close behind was the increasing tensions between Hong Kong and China, coming in at 8.4%. Among those 65 and older, the percentage increased to 9.5%, which is that group’s third-biggest concern. This demographic remembers when Hong Kong was a colony of the British Empire, which was summarily handed over to China in 1997. Today, though Hong Kong has one of the highest economic freedom indexes in the world. China is threatening to take much of that freedom away. The tensions between Hong Kong and China escalated in June when protestors came out by the millions to protest a now suspended extradition bill. This bill would have allowed the Chinese to extradite Hong Kong citizens to face trial in mainland China.
Fifth and Final Thing Investors Are Worried About Today
And, the last concern worth mentioning in the survey was the increased tensions in the Persian Gulf. This one coming in at 4.8%. However, another demographic anomaly shows up in this category where 8.7% of males between the ages of 55 – 64 had this as their biggest concern where their investments were concerned. This could be because males in this age bracket have invested more heavily in oil than any of the other demographic groups.
Worrying is Natural, Planning is Key
The moral of the story is, if you’re worried about any of the above issues, you’re not alone. Lot’s of times, we tend to think we’re the only ones concerned about a particular topic. This makes us feel isolated at best or crazy at worst. The reality is, if it’s worth worrying about, you’re probably in pretty good company.
But these worries and the likely hundreds of other things we all worry about daily are what make planning for your financial future so critical, and why we take it so seriously. Your success should never be dictated by or derailed by, geopolitical or economic forces outside your ability to control. Having a sound plan that takes into account these and other potential outcomes to ensure that your retirement will be solid is critical. But it’s what we do here every day.
If you’re not a client of Modern Wealth Management and you want to know if your plan is sound we’ll help you find out. Call us at 913-393-1000 or schedule a complimentary consultation below and someone will contact you. If you’re a client and wish to talk to your advisor about any of these issues and how they may affect your retirement plan, please do not hesitate to contact your advisor.
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Investment advisory services offered through Modern Wealth Management, Inc., an SEC Registered Investment Adviser.
The views expressed represent the opinion of Modern Wealth Management an SEC Registered Investment Advisor. Information provided is for illustrative purposes only and does not constitute investment, tax, or legal advice. Modern Wealth Management does not accept any liability for the use of the information discussed. Consult with a qualified financial, legal, or tax professional prior to taking any action.