News & Resources

Investor sentiment tepid amid market uncertainty

Dec 01, 2011 Walt Wojoiechowski

Investors are less than enthusiastic about the state of the U.S. economy, a new survey by suggests, but there are a few bright spots analysts point out as indicative of a slowly improving marketplace. According to the latest Investors' Sentiment Indicator, 56 percent of surveyed investors believe we are in a volatile market that won't make big swings for awhile, even as more than 42 percent remain bullish about the marketplace. A substantial majority of investors - 88 percent - also expect the housing market, the most troubled economic sector since before the financial collapse of 2008, will bottom out after this year. A whopping 94 percent expect unemployment to be 8 percent at the lowest by year's end. "Large-cap stocks, precious metals and small-or mid-cap U.S. stocks are the asset classes investors anticipate performing best for the remainder of the year, with approximately 63 percent of investors expecting those categories to remain strong," the report points out. Consumer sentiment has also taken a hit in recent months, as rising costs, high unemployment and slow wage growth discourage Americans from spending or investing.