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US investors watch and wait as recession fears grow

Mount Equity Group Tokyo Japan > News > Markets > US investors watch and wait as recession fears grow

Investors hold cash as optimism dips

Optimism for the US economy has dropped for both the long- and short-term outlooks with 39% of survey respondents feeling optimistic about the next 12 months (-19 percentage points vs. the previous survey) and 37% feeling optimistic about the stock market in the next six months (-21 percentage points vs. the previous survey).

Most investors (82%) see recession fears and inflation as barriers to investing, while 70% believe that market volatility is on the rise. And, they are responding by holding onto their cash, with 41% delaying big purchases for the short-term and an average of 21% of investor assets being held in cash.

To a lesser extent, they fear making bad investment (67%) decisions while market volatility persists or they just aren’t sure what to invest in (65%).

Investors often try to reconcile a constructive long-term view with a more challenging short-term outlook by simply waiting, says…

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