Edward Jones Study Reveals Gap Between Investors' Sentiment and Actions Related to Tariffs

Millennials may require more education on investing benefits, but the majority of Americans maintain market exposure despite tariff concerns

News provided by

Edward Jones

Aug 15, 2018, 09:00 ET

ST. LOUIS, Aug. 15, 2018 /PRNewswire/ -- More than half of investors (53 percent) believe recently imposed tariffs between the U.S. and China will affect their portfolios' performance, and nearly three-quarters of those investors (72 percent) believe the impact will be negative, according to the latest survey from financial services firm Edward Jones. However, investors aren't acting on their concerns, as 79 percent say they haven't made, or do not plan to make, changes to their portfolios.

"It's encouraging to learn that many investors are holding steadfast to their investment objectives and not making snap decisions or changes to their portfolios," said Kate Warne, principal, investment strategist at Edward Jones. "Their concerns are realistic, because if more tariffs are enacted, they could hurt economic growth here in the U.S. and throughout the world. But most of the tariffs implemented so far should have, at most, had a small overall impact on their investments, and as the economy continues to accelerate, we expect global growth won't be significantly affected. Investors should consider a balanced portfolio to help mitigate potential risk and ensure their investments are aligned with their long-term financial goals."

The survey also found that while the majority of Americans do not have an investment portfolio of stocks, bonds or mutual funds (61 percent), Millennials, who arguably are best-positioned to realize the greatest long-term gains from their investments, are the least likely to have an investment portfolio (70 percent), compared to 61 percent of Gen Xers and 53 percent of Baby Boomers. Further, when looking at Millennials' reaction to recent trade tensions, they were more likely to say they have made or plan to make changes to their portfolio (22 percent), compared to Gen Xers or Baby Boomers (17 percent and 14 percent, respectively).

"It's concerning that so many Millennials, the generation that stands to gain the most from the compounding effect of their investments, aren't building portfolios," added Warne. "They should feel encouraged to create wealth through investing, given their time horizon and the relatively positive outlook for the markets. And while some Millennials think they may make changes in response to tariff uncertainty, it's reassuring that the majority are aware that when investing for the long term, ups and downs in the markets are expected and should not dictate investment decisions."

Methodology

Engine's Telephone CARAVAN® Omnibus conducted this survey on behalf of Edward Jones. The survey was conducted among a nationally representative sample of 1,004 respondents from July 19-22, 2018.

About Edward Jones

Edward Jones, a FORTUNE 500 firm, provides financial services for individual investors in the United States and, through its affiliate, in Canada. Every aspect of the firm's business, from the types of investment options offered to the location of branch offices, is designed to cater to individual investors in the communities in which they live and work. The firm's 16,000-plus financial advisors work directly with more than 7 million clients and care for $1 trillion in assets under management. Edward Jones is headquartered in St. Louis. The Edward Jones Web site is at www.edwardjones.com, and its recruiting Web site is www.careers.edwardjones.com. Member SIPC

SOURCE Edward Jones