Are investors holding back on decisions until after the election?

Are investors holding back on decisions until after the election?
Barometer of investor sentiment also reveals bullish/bearish split.
SEP 06, 2024

It’s still a couple of months until the presidential election but are the potential impacts on the markets depending on a Harris or Trump win deterring stalling investment decisions?

It’s a question asked by the American Association of Individual Investors as part of its weekly survey of investor sentiment, determining whether respondents are more bullish or more bearish on US equities for the coming months.

Bullish sentiment remains above the historical average of 37.5% this week, as it has done 43 times out of the last 44 weeks. But it decreased by almost 6 points to 45.3%, narrowing the gap with bearish sentiment to 20.4%.

Bearish sentiment was down almost three points this week to 24.9%, remaining below its historical average of 31% for the fourth week.

On the topic of holding off making investment decisions until after the election, most of the survey’s respondents are not with 60% saying they are sticking to their long term plan. Another 16% say they are not holding back for now but may do once the election results are in, and 4% are not sure.

That leaves 9.6% who say they are not putting new money to work right now and 9.6% who have switched to a more conservative allocation until after the election.

 

Latest News

Warren and Wyden press FINRA on ACATS transfer fraud gap
Warren and Wyden press FINRA on ACATS transfer fraud gap

Senators say brokerages leave accounts exposed to fraudulent transfers without verification, intensifying pressure as FINRA weighs its own fraud-hold rule

Forbes advisor list update: Morgan Stanley drops it, owner says changes are coming
Forbes advisor list update: Morgan Stanley drops it, owner says changes are coming

Meanwhile, the founder of advisor list gives reasons for secret $6 million payment to editor.

U.S. Bank names chief private banking officer for wealth unit
U.S. Bank names chief private banking officer for wealth unit

Internal C-level promotion comes as US Bank builds out private banking, athlete-focused advice and alternatives infrastructure.

Why planning is the only strategy that holds in every market
Why planning is the only strategy that holds in every market

A structured financial plan doesn't just prepare clients for the future, it transforms how they respond to the present.

Gemini, Apex deal reflects prediction markets move towards mainstream retail investing
Gemini, Apex deal reflects prediction markets move towards mainstream retail investing

Regulated prediction markets for retail brokerage clients is the latest sign that prediction markets are entering the mainstream investing toolkit.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income