Only 22% of Americans trust the U.S. financial system, according to the latest quarterly Chicago Booth/Kellogg School Financial Trust Index.
Trust in the stock market, mutual funds and large corporations all eroded slightly in the new survey, released Wednesday. At the same time, trust in banks rose by two percentage points to 32%.
Housing market expectations also improved, with 32% of respondents believing housing prices will increase in the next 12 months (compared with 26% in December). However, the number of people who said they knew someone who had strategically defaulted on a mortgage rose to 37% from 32% in December.
“This quarter we also saw an increased appetite for financial risk,” Luigi Zingales, co-author of the index and a professor at the University of Chicago’s Booth School of Business, said in a statement. “Although some areas of the study show a drop in trust, 25% of people surveyed demonstrated a willingness to make potentially high-yielding investments despite higher risks.”