Majority of Investors Are Concerned, yet Unmoved by Market Volatility, Finds Edward Jones Study

Thirty-Five percent of Boomers don't believe their retirement portfolio can withstand a market correction

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Sep 26, 2017, 09:00 ET

ST. LOUIS, Sept. 26, 2017 /PRNewswire/ -- According to a new study from financial services firm Edward Jones, a majority of Americans (64 percent) are concerned about market volatility over the next 12 months. However, even amidst growing concerns, more than half of investors (55 percent) say they would not adjust their portfolios if the stock market declined more than 10 percent. The survey was conducted among a nationally representative sample of 1006 respondents from August 24-27, 2017.

When taking a closer look at how different generations view near-term volatility, the survey found that Gen Xers (64 percent) and Baby Boomers, (75 percent) are most concerned about the next 12 months.

"It's encouraging to see that investors aren't making rash or emotional decisions when it comes to their investment portfolios," said Kate Warne, principal and investment strategist for Edward Jones. "It's important to remember that markets naturally peak and dip over time, fluctuating much more frequently than the U.S. economy. Having a well-diversified portfolio will work to hedge against market volatility, lessening the impact of inevitable corrections."

In the event of a market correction, one-third of Americans (33 percent) believe their retirement portfolio is not diversified enough to live comfortably in retirement. Interestingly though, Millennials (37 percent), the group farthest from retirement, were just as worried about their ability to retire as Baby Boomers (35 percent) and Gen Xers (32 percent).

"It's understandable that those closest to retirement would be concerned about how a market correction will impact their ability to retire comfortably, but others are concerned as well," said Scott Thoma, principal and retirement strategist for Edward Jones. "Reviews are always important. But especially as investors approach their retirement, it's critical to review their investments to ensure they are appropriately balanced relative to their income needs and comfort with risk, as well as ensure they have enough cash to cover their near-term spending needs. This will help ensure that in the event of any unexpected market volatility, drastic changes will not be needed."

Methodology

This survey was conducted by ORC International's Telephone CARAVAN® Omnibus on behalf of Edward Jones. The survey was conducted among a nationally representative sample of 1006 respondents from August 24-27, 2017.

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 13,000-plus financial advisors work directly with nearly 7 million clients. Edward Jones, which ranked No. 10 on FORTUNE magazine's "100 Best Companies to Work For 2016," is headquartered in St. Louis. The Edward Jones Web site is located at www.edwardjones.com and its recruiting Web site is www.careers.edwardjones.com. Follow Edward Jones on Twitter @EdwardJones and visit the firm's Facebook site at www.facebook.com/edwardjones. Member SIPC.