Two-thirds of investors say they’re “doomscrolling,” checking the performance of their investments on their smartphone often during market downturns, according to a Wells Fargo survey released Thursday.
Among the survey’s respondents, half of men and 27% of women said they check the value of their investments multiple times a week.
The survey queried 2,000 U.S. adults, 1,163 of whom have investments in the stock market, between September 21 and 27.
The survey also found that some investors are contemplating steps more drastic than doomscrolling. Of the respondents, 42% reported that they want to cash out of their investments, and 29% said they would cash out their IRA or 401(k) plan if there were no tax penalty.
“Uncertainty on so many levels can cause people to focus in on their present self, or immediate needs and circumstances — and to lose focus on their future self, or more strategic priorities like retirement readiness,” Michael Liersch, head of advice and planning in Wells Fargo’s Wealth and Investment Management business, said in a press release accompanying the survey’s results. “The irony is that this is the moment when we need to keep balance between our present and future selves, and potentially even dedicate more, not less, to our future selves.”
Less than half of investors — 44% — said they feel confident knowing where to invest in today’s market. And of those without money in the stock market, 50% cited lack of knowledge as a primary barrier to investing.
The survey also found generational divides in where investors turn for advice to navigate the news they’re consuming.
Gen Z and millennials rely heavily on tips from family, 50% and 52% respectively, with 44% of Gen Zers also saying they receive financial information from social media sites such as YouTube and TikTok.
In more positive news for the financial services industry, Gen X and baby boomers named their financial advisors as key sources of information, with 46% and 55% respectively relying upon them.
So what would settle these fears? A robust 65% of respondents said lower inflation would make them more confident in their investments. Other fear-busting developments cited were declining interest rates, decreasing gasoline prices and an end to the Ukraine conflict.
Meanwhile, other investors aren’t waiting for happier times. Nearly one in five of the survey’s respondents, 18%, said they want to free up money to capitalize on the down market by investing further. Of that group, 55% reported that they’ve funneled entertainment funds to their investments, while 46% have done the same for personal expenses, such as clothing, and 45% have boosted investments by reducing the money spent at restaurants.
Source: news.google.com
