Survey of Investors Indicates Concern about the Stock Market Decline

  A more recent investor survey was conducted by CNN/USA
Today/Gallup Poll by telephone on July 29–31, 2002 of 1003 adults.
Some of the key findings were as follows:2
♦ 62 percent follow the stock market news closely.
♦ 66 percent own stock.
♦ 63 percent of stockholders feel that owning stocks is more of
a gamble than a good investment.
♦ 63 percent say that “buy-and-hold” is the best strategy for
them.
♦ 59 percent have lost money in the market over the past 12
months.
♦ 20 percent have sold some stock or mutual funds over the
past 12 months.
♦ As far as the decline in the stock market is concerned, 51 percent
perceive it as a major problem, while 29 percent view it
as a minor problem, and 14 percent think it is a crisis.
♦ 34 percent feel the decline has shaken their confidence in the
economy.
♦ 49 percent will cut back on their spending.
♦ 42 percent will live less comfortably than they thought they
would.
♦ 38 percent will be unable to maintain their standard of living.
♦ 36 percent will now retire at a later age ♦ 26 percent believed that the Dow Jones would recover
to 11,000 within a year, 30 percent said within two years,
14 percent within three years, 16 percent in more than
three years, 7 percent said never, and 7 percent had no
opinion.