Americans Have Dismal Outlook on Economy

Americans have a rather dismal outlook on the economy based on recent events at home and abroad, according to a survey by Fidelity Investments.

When taking into account market volatility and European debt, 64% of Fidelity’s respondents said a double dip recession is likely to happen or is already here.

The current European debt crisis has more than half of respondents worried for the future, with 65% saying that it will impact the U.S. market for at least a year. And volatility in the market is to be expected for the extended future and should be considered the norm, according to 80% of respondents.

"The European debt crisis, recession fears and potential tax increases have stopped many U.S. investors in their tracks, and they are looking for ways to re-engage with an investment strategy that fits their risk tolerance and helps them achieve their financial goals," Sweeney said in a statement.

Outside of volatility, nearly two-thirds are expecting the S&P 500 to finish out the year either down or completely flat. According to John Sweeney, executive vice president of Fidelity, their investors are looking for any guidance to try and “weather the daily fluctuations.”

Most of the respondents, 67%, s

ee long-term buying opportunities with current stock conditions, while less than a quarter (21%) view the market conditions as selling opportunities.

According to the report, jobs are the one thing that investors are keeping their hopes up for. Nearly three-quarters (73%) said that in order to spur strong economic growth there needs to be a large drop in the unemployment rate.