PREMIUM SEARCH Search by job title, geography and build a list of executive contacts
Investors think the gyrating stock market will affect both the economy and their spending -- but they haven't given up on stocks. That's the conclusion from our July 25 Reader Survey, in which about 650 readers participated.
An overwhelming 82% said they think the recent swings in the market will affect the economy. And 62% said the uncertain market will prompt them to spend less of their income than before (though 34% remain undaunted).
Yet, 30% said they see the down market as an opportunity to buy more stocks, and 42% said they'll hold onto stocks they own, rather than sell. When asked what they would do with a sudden windfall, moreover, about 30% said they would put it into stocks, the same percentage that would opt for depositing it in a savings account. Some 21% would choose bonds, and 20% real estate.
Like just about everyone else, those who responded aren't quite sure where the market's bottom will be. Some 44% said they think the markets haven't bottomed yet, while 26% said they have, and 30% said it isn't clear yet.
Some 80% of those who participated said they own stocks outside of a pension plan.
Here are the complete results of the survey, which are unscientific since anyone who wished to could particpate:
Do you own and/or trade stocks outside of a 401(k) or other pension plan?
Option
Total
%
Yes
508
78.88 %
No
97
15.06 %
Not anymore
39
6.06 %
Do you think the recent swings in the market will have any effect on the economy?
Option
Total
%
Yes
533
82.38 %
No
76
11.75 %
Don't know
38
5.87 %
Have the swings in the market prompted you to spend less of your income than before?
Option
Total
%
Yes
401
62.27 %
No
221
34.32 %
Not sure
22
3.42 %
If you own stocks, are you more inclined as a result of the market's swings to:
Option
Total
%
Buy more stocks
185
29.04 %
Sell your current holdings
118
18.52 %
Neither buy nor sell, but simply hold stocks
271
42.54 %
I don't own stocks
63
9.89 %
Do you think that the markets have now hit bottom?
Option
Total
%
Yes
166
25.9 %
No
286
44.62 %
Don't know
189
29.49 %
If you experienced an income windfall today, where would you put the money?
Option
Total
%
Stocks
191
29.84 %
Bonds
131
20.47 %
Savings account
191
29.84 %
Real estate
127
19.84 %
Get BusinessWeek directly on your desktop with our RSS feeds.
Add BusinessWeek news to your Web site with our headline feed.
Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video.
To subscribe online to BusinessWeek magazine, please click here.
Copyright 2002, Bloomberg L.P.
Printer-Friendly Version
