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When it comes to finding someone who'll give them an accurate portrayal of how companies are performing financially, investors have little confidence in corporate leaders or auditors. And they don't believe Washington can do much to improve the situation.
However, that doesn't seem to dissuade them much from continuing to invest in stocks.
Those are some of the conclusions from our June 13 Reader Survey. Of the more than 500 readers who participated, nearly 78% said they invest in stocks or stock mutual funds outside of a 401(k) plan. Some 17% said that over the next six months they'll probably invest more, while 15% said they'll invest less, and 36% said they'll stand pat.
Sounds pretty benign, until you hear what the respondents think of everyone they're affected by when they invest.
NO HELP EXPECTED. For instance, some 92% have "only some" or "hardly any" confidence that the market treats individual investors fairly. Some 93% have "only some" or "hardly any" confidence in those who run big companies. About 95% feel the same way about big auditing companies, such as Arthur Andersen.
Some 82% are either "not too confident" or "not at all confident" that corporations accurately report how much money they make.
And few of the repondents really believe that anyone can or will do much about all this. For instance, 94% have "only some" or "hardly any" confidence that Congress can write effective rules governing corporate financial practices. Some 93% have the same view of the chances that federal regulatory agencies can do the job. And 60% strongly disagree that corporations can successfully reform themselves.
Here are the full results of this survey, which, while sobering, isn't scientific, since anyone who wished to could participate:
Over the next six months, what will you probably do about your investments in stocks or stock mutual funds?
Option
Total
%
Invest a lot more
16
3.16 %
Invest somewhat more
84
16.57 %
Reduce your investments somewhat
75
14.79 %
Reduce your investments a lot
97
19.13 %
Keep your existing investments
180
35.5 %
Not sure
55
10.85 %
How much confidence do you have that the stock market treats individual investors fairly?
Option
Total
%
A great deal
30
5.89 %
Only some
157
30.84 %
Hardly any
311
61.1 %
Not sure
11
2.16 %
How much confidence do you have in those running big businesses?
Option
Total
%
A great deal
28
5.50 %
Only some
171
33.6 %
Hardly any
302
59.33 %
Not sure
8
1.57 %
How much confidence do you have in those running big auditing companies such as Arthur Andersen?
Option
Total
%
A great deal
16
3.15 %
Only some
152
29.92 %
Hardly any
331
65.16 %
Not sure
9
1.77 %
How much confidence do you have in the ability of Congress to write effective rules governing corporate financial practices?
Option
Total
%
A great deal
17
3.33 %
Only some
145
28.43 %
Hardly any
336
65.88 %
Not sure
12
2.35 %
How much confidence do you have in the ability of federal agencies to regulate corporate financial practices?
Option
Total
%
A great deal
26
5.13 %
Only some
216
42.6 %
Hardly any
256
50.49 %
Not sure
9
1.78 %
How confident are you that corporations accurately report how much money they make?
Option
Total
%
Very confident
9
1.77 %
Somewhat confident
83
16.34 %
Not too confident
234
46.06 %
Not at all confident
182
35.83 %
Do you agree or disagree that corporations can reform themselves without new laws and regulations?
Option
Total
%
Strongly agree
27
5.30 %
Only somewhat agree
101
19.84 %
Only somewhat disagree
76
14.93 %
Strongly disagree
305
59.92 %
Do you currently invest in stocks or stock mutual funds outside an employer-sponsored 401(k) plan?
Option
Total
%
Yes
396
77.5 %
No
115
22.5 %
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