GALLUP NEWS SERVICE
PRINCETON, NJ -- With the Dow Jones Industrial Average continuing to bounce around in the low 9,000 range, Americans have become considerably more dour about a wide range of economic questions than they were just over a year ago. At that time, March 14, 2001, the stock market had fallen through the 10,000 point level for the first time in almost two years, dropping 750 points in the previous five days of trading. But Americans did not seem as pessimistic in the wake of that decline as they are today.
A CNN/USA Today/Gallup poll conducted at the end of last month found two-thirds of Americans saying that the recent changes in the stock market have made them feel less confident about the nation's economy, up from 51% who felt that way in March, 2001.
Have Recent Changes in the Stock Market Made You ...? |
Other effects of the stock market:
- 64% of Americans say they will be less likely to invest in the stock market, up from just 40% who felt that way a year ago.
- 53% expect to live less comfortably in retirement, compared with 33% who felt that way last year.
- 49% are now less confident about their own personal financial situation, up from 29% last year.
- 30% have seriously considered postponing or canceling a major purchase, up from 21% who said that last year.
- 26% are less confident about their job situation, up from 15% a year ago.
The poll shows that the views of stock owners, about two-thirds of all Americans, are not significantly different from people who do not own stock.
Business Scandals Deter Investing
The poll also shows that a majority of Americans, 58%, say that the scandals involving large corporations make them less likely to invest in the stock market. Among stock owners, the percentage is virtually the same, 57%.
Survey Methods
These results are based on telephone interviews with a randomly selected national sample of 1,019 adults, 18 years and older, conducted June 28-30,2002. For results based on this sample, one can say with 95 percent confidence that the maximum error attributable to sampling and other random effects is plus or minus 3 percentage points. In addition to sampling error, question wording and practical difficulties in conducting surveys can introduce error or bias into the findings of public opinion polls.
Do the recent scandals involving large corporations make you less likely to invest in the stock market, or not?
Yes, less likely |
No, not less likely |
No opinion |
|
2002 Jun 28-30 |
58% |
39 |
3 |
Next, please tell me whether the recent changes in the stock market have, or have not [RANDOM ORDER]?
A. Made you feel less confident about the nation's economy?
|
No, |
DOESN'T APPLY (vol.) |
No |
|
% |
% |
% |
% |
|
National Adults |
||||
2002 Jun 28-30 |
67 |
30 |
* |
3 |
2001 Mar 14 |
51 |
46 |
1 |
2 |
1998 Sep 1 |
37 |
59 |
1 |
3 |
Stockholders |
||||
2002 Jun 28-30 |
68 |
31 |
* |
1 |
2001 Mar 14 |
54 |
45 |
* |
1 |
1998 Sep 1 |
38 |
61 |
0 |
1 |
In March 2001, the Dow Jones Industrial Average fell by more than 300 points and closed below 10,000. |
||||
In 1998, the Dow Jones Industrial Average fell by 513 points in one day and gained 288 points the next day. |
B. Made you feel less confident about your own personal financial situation?
|
No, |
DOESN'T APPLY (vol.) |
No |
|
% |
% |
% |
% |
|
National Adults |
||||
2002 Jun 28-30 |
49 |
49 |
1 |
1 |
2001 Mar 14 |
29 |
69 |
1 |
1 |
1998 Sep 1 |
27 |
69 |
3 |
1 |
Stockholders |
||||
2002 Jun 28-30 |
52 |
47 |
1 |
* |
2001 Mar 14 |
32 |
67 |
* |
1 |
1998 Sep 1 |
27 |
72 |
* |
1 |
C. Made you seriously consider canceling or postponing a big purchase, vacation or other expenditure?
|
No, |
DOESN'T APPLY (vol.) |
No |
|
% |
% |
% |
% |
|
National Adults |
||||
2002 Jun 28-30 |
30 |
67 |
3 |
* |
2001 Mar 14 |
21 |
77 |
2 |
* |
1998 Sep 1 |
14 |
82 |
3 |
1 |
Stockholders |
||||
2002 Jun 28-30 |
30 |
68 |
2 |
0 |
2001 Mar 14 |
24 |
75 |
1 |
* |
1998 Sep 1 |
15 |
84 |
1 |
0 |
D. Made you less likely to invest in the stock market?
|
No, |
DOESN'T APPLY (vol.) |
No |
|
% |
% |
% |
% |
|
National Adults |
||||
2002 Jun 28-30 |
64 |
33 |
3 |
* |
2001 Mar 14 |
40 |
56 |
3 |
1 |
Stockholders |
||||
2002 Jun 28-30 |
65 |
34 |
1 |
* |
2001 Mar 14 |
42 |
55 |
2 |
1 |
E. Made you less confident that you will be able to live comfortably when you retire?
|
No, |
DOESN'T APPLY (vol.) |
No |
|
% |
% |
% |
% |
|
National Adults |
||||
2002 Jun 28-30 |
53 |
39 |
7 |
1 |
2001 Mar 14 |
33 |
58 |
7 |
2 |
Stockholders |
||||
2002 Jun 28-30 |
54 |
40 |
5 |
1 |
2001 Mar 14 |
33 |
60 |
6 |
1 |
F. Made you less confident about your job situation?
|
No, |
DOESN'T APPLY (vol.) |
No |
|
% |
% |
% |
% |
|
National Adults |
||||
2002 Jun 28-30 |
26 |
56 |
17 |
1 |
2001 Mar 14 |
15 |
66 |
19 |
* |
Employed ^ |
||||
2002 Jun 28-30 |
29 |
69 |
1 |
1 |
2001 Mar 14 |
21 |
78 |
1 |
* |
Stockholders |
||||
2002 Jun 28-30 |
24 |
63 |
13 |
* |
2001 Mar 14 |
18 |
67 |
15 |
* |
^ Based on --647-- adults employed full or part-time |
SUMMARY TABLE: CHANGES IN THE STOCK MARKET
|
|
No, have not |
% |
% |
|
Made you feel less confident about the nation's economy |
67 |
30 |
Made you less likely to invest in the stock market |
64 |
33 |
Made you less confident that you will be able to live comfortably when you retire |
53 |
39 |
Made you feel less confident about your own personal financial situation |
49 |
49 |
Made you seriously consider canceling or postponing a big purchase |
30 |
67 |
Made you less confident about your job situation |
26 |
56 |
* -- Less than 0.5%