U.S. Investors Sitting Tight but Expect Slow Market Recovery

WASHINGTON, D.C. -- The majority of U.S. investors -- those with $10,000 or more invested in stocks or bonds -- see the current stock market environment as a time to hold what they have and wait for the market to come back. Meanwhile, far more see it as a time to purchase more stock while prices are down (34%) than as a time to decrease holdings to protect from further losses (4%).

	March 17-19	April 3-5
	%	%
As an opportunity to purchase more stock while prices are down	34	29
As a time to hold the stock you have and wait for the market to come back	52	55
As a time to decrease your stock holdings to protect from further losses	4	6
Doesn't apply	10	9
Wells Fargo/Gallup Panel, 2020

The latest findings are based on an online, probability-based Gallup Panel survey conducted April 3-5. For this survey, investors are defined as adults in households with $10,000 or more in stock or bond investments, either individually or as part of a retirement account or mutual fund.

These results are an update of a Wells Fargo/Gallup survey of investors conducted by web using the Gallup Panel from March 17-19. At that time, the Dow Jones Industrial Average closings were hovering around 20,0000, down nearly 30% from the Dow's high point a month earlier. Since then, the Dow fell further to below 18,000 before building back up to just over 21,000 at the time of the latest survey.

While investors' broad reactions to the market climate have remained the same over the past three weeks, the percentage viewing it as a good buying opportunity has slipped five points, from 34% to 29%. At the same time, the percentages saying it is time to hold or sell stocks have each increased slightly.

Investors Turn Pessimistic on Market Rebound

As the COVID-19 crisis stretches into a second month with no end in sight to current business closures and sweeping social distancing recommendations, investors have grown less optimistic about how soon the market will recover once the coronavirus crisis ends.

Whereas in mid-March, 55% of investors predicted the stock market would bounce back quickly after the crisis and 45% thought it would take a long time to recover, today those figures are reversed: 45% say it will bounce back quickly and the majority (55%) say it will take a long time to recover.

	March 17-19	April 3-5
	%	%
Bounce back quickly	55	45
Take a long time to recover	45	55
Wells Fargo/Gallup Panel, 2020

Investors Confident, but Not Convinced, They Can Weather Market Downturn

More than eight in 10 investors are confident they can weather the current market downturn based on their existing asset allocation or financial plan. However, fewer than half, 39%, are very confident of this, while another 46% are somewhat confident. Altogether 16% are not confident, up slightly from 11% in March.

	March 17-19	April 3-5
	%	%
Very confident	40	39
Somewhat confident	50	46
Not too confident	9	13
Not confident at all	2	3
Wells Fargo/Gallup Panel, 2020

While the majority of all subgroups of investors are at least somewhat confident they will get through the downturn, men (47%), investors younger than 35 (50%) and higher-income investors -- those earning $90,000 or more annually (43%) -- are the most likely to be "very confident." Consistent with their younger age, on average, employed investors are more likely to be very confident (42%) than retired investors (32%).

	Very confident	Somewhat confident	Not too confident	Not confident at all
	%	%	%	%
Gender
Men	47	39	12	2
Women	31	52	14	4
Age
18-34 years old	50	40	8	2
35-54 years old	38	42	17	3
55 and older	33	51	12	4
Income
$90,000 or more	43	43	12	2
$36,000-Less than $90,000	35	47	14	4
Less than $36,000	27	49	23	1
Employment status
Employed	42	40	14	3
Retired	32	52	14	3
Other not working	34	58	6	2
Wells Fargo/Gallup Panel, 2020

As of early April, relatively few investors, 17%, report having contacted a financial professional for advice since the market downturn. That is little changed from the 15% reporting this in the mid-March survey.

The vast majority of those who have contacted a financial professional say it was their own personal financial adviser (94%) they reached out to. Just 3% contacted a financial call center and 4% some other financial professional.

Learn more about how the Gallup Panel works.