Individual investors still have confidence in U.S. publicly-traded companies, according to a new study.
The Center for Audit Quality, Washington, D.C., published this finding in its 5th Annual “Main Street Investor Survey.” The telephone survey of 1,003 investors was conducted September 6-14, 2011 by The Glover Park Group.
Seven in 10 investors (70%) indicated that they have at least some confidence in investing in U.S. public companies. While this represents a decline of five percentage points from 2010, a majority of American investors continue to express confidence in these companies, the survey says.
The investing public’s confidence in U.S. capital markets dropped as well, but stands at 61% (down from 68 percent in 2010).
The CAQ has conducted this yearly survey of U.S. investors since 2007.
The survey’s other findings include:
- Confidence in capital markets outside the United States remains low; only 43% of investors have confidence in markets outside our borders. For the first time in the survey’s history, as many investors say they are not confident in foreign markets (42%) as say they are (43%). Investors’ main reasons for low confidence in non-U.S. markets include sovereign debt problems and economic troubles worldwide.
- Confidence in audited financial information remained steady, declining one percentage point from 2010 (70% to 69%).
- Public company auditors, along with financial advisors and brokers and audit committees of publicly-traded companies, top the list of entities investors believe are looking out for investors’ interests.
- The two financial concerns that keep investors up at night are not having enough money for retirement and not being able to afford health care if they or a family member are seriously ill or injured.