High Net Worth Investors Maintain Steady Portfolios Despite Coronavirus Crash, Increase in Concern Level Over Impacts to Global Economy

CHICAGO, March 13, 2020 /PRNewswire/ -- Despite a stock market plunge that sent a decade-long bull market into freefall, individual investors are not overreacting, according to a new report from Spectrem Group, The Corona Crash: What Advisors Should Be Saying To Investors Now.

The findings indicate that while individual investors may have concerns about the economic impact of the crash caused by the outbreak of the coronavirus, they have not let their concerns impact investment decisions. Rather, institutional trading has fueled the drop, which reached almost 20 percent by March 11.

The report analyzes the opinions of 845 investors surveyed the last week of February and 795 investors surveyed March 4-9. Investors with a net worth between $100,000 and $25 million, not including their primary residence, were surveyed.

Key findings include:

• From late February to mid-March, investors' concern level over the impact of the coronavirus on the economy jumped 10 points, from 60.94 to 70.49 on a 100-point scale.
• 20 percent of investors indicated they were not impacted by the "Corona Crash."
• 17 percent of investors purchased equities during the market decline while only 9 percent of investors sold equities.
• Less than a third of investors had not heard from their financial advisor from late February to mid-March, showing financial professionals are communicating with their clients during this challenging time.
• Most investors believe their financial situation at the end of 2020 will be the same as it is today, and most investors do not plan on making dramatic changes to their portfolios in the next 12 months.
• More than half of investors believe coronavirus is being blown out of proportion by the media.

"While the world adjusts to the impact of the coronavirus on the health of the world, it is vital to financial advisors that they understand how investors are reacting to the stock market decline,'' said Spectrem President George H. Walper, Jr. "The timeliness of this study provides real-time reactions that advisors can use to address investor concerns in the days and weeks to come."

Additional information on Spectrem studies can be found at Spectrem.com.

About Spectrem Group: Spectrem Group (www.spectrem.com) strategically analyzes its ongoing primary research with investors to assist financial providers and advisors in understanding the Voice of the Investor.

Contact:
George H. Walper, Jr. 
(224) 544-5350
[email protected]

SOURCE Spectrem Group

Related Links

http://www.spectrem.com/

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