Monday, August 26, 2019

Investors Are Getting Shaky

U.S. investor optimism sunk to the lowest level since the fourth quarter of 2016 following the market volatility seen at the start of this month, according to a new survey from Wells Fargo. Confidence among American investors weakened in the 12-month outlook for the stock market and U.S. employment.

The third quarter Wells Fargo/Gallup Investor and Retirement Optimism Index was down 13 points from 85 in the second quarter and far below the post-recession high of 117 reached in the fourth quarter of 2017. This was the largest quarterly drop for the index in over three years.

Investor optimism dropped this quarter across all four components of the index: investors’ 12-month outlook for the stock market, 12-month outlook for unemployment, optimism about unemployment, and inflation. The percentage of investors who said now was a good time to invest in the market fell to 59 percent this quarter from 65 percent in the prior quarter.

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