Americans’ tolerance for investment risk-taking increased significantly between 2013 and 2014, according to new research.
So reports Hearts & Wallets in its annual “Investor Mindset” study. The report analyzes attitudes and behaviors of investor life stages from age 21 through post-retirement and is drawn from the Hearts & Wallets Quant Panel Database.
The 5,500-U.S. household study shows the rise in comfort for market volatility was most marked among “mid-career investors,” those ages 40-52. When asked whether they’re prepared to take risks with investments by accepting volatility in the hope of securing a higher return, (one-third) 34 percent of mid-career investors expressed a willingness to do. This compares with 24 percent in 2013, a 10-point increase.
Other investor segments, from “emerging” millennials (ages 21-27) to post-retirees (ages 64 and older) also expressed greater comfort for market volatility, the rise in risk tolerance ranging from 1 to 6 points. (See chart below.)
Commenting on “early career investors” (ages 28-39), the report observes that a desire to partake of investment opportunities now outweighs their aversion to potential financial loss.