What Investors Are Thinking
Our Investor Pulse survey sheds new light on what investors are thinking and doing in the current investment environment.
In the face of challenging global economic conditions and a new world of investing, BlackRock wanted to know what was on the minds of investors. How are investors feeling about meeting long-term financial goals, especially retirement? What are key concerns about the current investment environment? How willing are investors to make portfolio adjustments to capture opportunit?
Our annual Investor Pulse survey provides answers to these questions that are on the minds of investors today. We conducted this research in summer and fall of 2013 with 4,000 U.S.-based investors and 500 financial advisors. What we learned might provide some helpful insight as you think about what to do with your clients' money. Our five findings are presented here.
How to Take Action with the Investor Pulse Results
Our Investor Pulse survey suggests that investors are challenged in this current environment of low yields and high volatility. Although investor uncertainty is leaving many "stuck in place," we believe there are investment opportunities—particularly for those who have the determination to seek them out and the confidence to act. The "gap" in confidence can be closed by practical actions that offer clear outcomes.
There are a number of action items that we believe will help you move your clients forward in this new world of investing:
- Rethink the Cost of Cash: Cash is an essential part of everyone's finances and plays an important role in saving and investing. While today's market conditions understandably produce anxiety, help your clients with large amounts of cash to take a step back, assess their goals, and find ways to make their money work harder for them.
- Seek Income in Different Places: Income from investments is important for retirees, but it's also a powerful tool to build wealth over time for those still working. With low yields on cash, investors may need to cast a wider net to generate income. Educate your clients on the wide array of income-producing investments that they can consider based on their goals and risk tolerance.
- Seek Growth in Unpredictable Markets: People around the world are living longer and the number of retirees is growing. Not only should investors consider saving for retirement as early as possible, but also think about how to invest along the way. Educate your clients about the facts of the new world of retirement and then ensure that their savings and investment strategies are fully aligned with those needs.
- Expand Your Indexing: Indexing provides your clients with instant diversification whether accessed through a mutual fund or an exchange traded fund (ETF). Consider ETFs as an essential building block for the core of your clients' portfolios.
Investment Solutions to Consider:
- BlackRock Strategic Income Opportunities Fund
- BlackRock Global Long/Short Credit Fund
- BlackRock Multi-Asset Income Fund
- BlackRock National Municipal Fund
- BlackRock Global Allocation Fund
- BlackRock Equity Dividend Fund
- BlackRock Global Dividend Fund
- iShares Core Series
A Deeper Insight Into the 5 Core U.S. Findings:
When we talked to people across the country, we found five key themes shared by many. What we learned might provide some helpful insight as you think about what to do with your clients' money.
Apply the Research to Your Practice
Watch BlackRock's Investment and Retirement Education expert discuss the findings from the most recent survey.
Learn More About the Survey
Start the Client Conversation With:
"More than ever in a new world ushered in by crisis, investors at all income levels need answers on how to better manage their money for the future.We need to let them know that it is still possible for them to achieve their retirement and other long-term goals but they need to take action."
"Our research shows that advised investors are more confident than the unadvised in their ability to achieve goals such as funding a comfortable retirement – 70% advised vs. 55% unadvised. This clearly demonstrates the valued role advisors play in keeping clients focused on today's many opportunities to make their future more financially secure."
Head of BlackRock's US Retail Business
This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Any opinions expressed are as of October 2013 and may change as subsequent conditions vary. The information and opinions contained in this paper are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. This content may contain "forward-looking" information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this paper is at the sole discretion of the reader. The information provided here is neither tax nor legal advice. Investors should speak to their tax professional for specific information regarding their tax situation.
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