Down market doesn't affect most investors' strategies

January 23, 2009

Despite volatility in the stock market, 60 percent of U.S. consumers say they are not altering their investment choices, according to a survey by a market research firm.

Despite volatility in the stock market, 60 percent of U.S. consumers say they are not altering their investment choices, according to a December survey by market research firm Morpace.

The firm asked 1,015 consumers age 18 or older over the internet how a down market affects their investment choices. Sixty percent answered "No change: I have set a long-term plan and don't overly worry about short-term fluctuations," while 33 percent responded that they have become "more conservative."

Stocks, bonds, and mutual funds reportedly now account for 16 percent of investors' portfolios, down from 21 percent in July, according to Morpace. But when 401(k) and IRA plans are included, the decline in proportion of market-related assets is less than 3 percentage points.