Second-quarter market volatility is making Americans increasingly worried about their finances and retirement savings, with only 31% in a new survey saying they were comfortable with market conditions and ready to invest, down two percentage points from the previous quarter and four points from last year’s first quarter.
The latest market perceptions study from Allianz Life also found that more Americans feared the approach of a major recession in the second quarter than in the 2019 and 2018 first quarters — 48% vs. 46% and 44% — or major market crash — 47% vs. 46% and 42%.
“Volatility has become the norm over the past year and a half, but that doesn’t mean those major market swings are any less gut-wrenching,” Kelly LaVigne, vice president of advanced markets at Allianz Life, said in a statement.
“The collective worry around an impending market crash or recession has been growing steadily since last summer, and people are starting to wonder when the other shoe will drop.”
The study’s findings were based on online surveys conducted in March and May this year among 1,000 respondents 18 and older, and in April 2018 among 800 respondents.
The survey’s findings suggest that volatility might also be making people wary of investing funds. Thirty-seven percent of respondents said now was a good time to invest in the market, compared with 41% who said this in the first quarter.
The survey results further showed millennials were more reluctant than their Gen X and baby boomer counterparts to invest now — 36% vs. 34% and 28% — even though they had the longest way to go before retirement.