After enjoying robust market returns for two years, 69% of American investors believe that the world is teetering and are worried about their finances, Natixis Investment Managers reported this month. Global conflict, inflation and policy uncertainty have tamped down investors’ return expectations to 12.6% this year from 15.6% in 2023.
The findings are based on a survey that Natixis IM conducted in February and March among 750 U.S. individual investors who have a median of $625,000 in net investable assets and a median annual income of $200,000. The survey is part of a broader one comprising 7,050 individual investors across Asia, Europe, the Middle East, Africa, the United Kingdom and North America.
Uncertainty Reigns
Only 26% of U.S. investors believe that inflation is behind them, the survey found, even though it is nearing Federal Reserve targets, and 61% cite it as their top financial fear.
Because of higher everyday costs, 60% of respondents said they are saving less and 57% have seen investment gains eroded — and these figures are mirrored by more than half of American millionaires, Natixis IM said. In addition, half of investors fear a market crash.
High rates, low confidence and political uncertainty have raised fears of economic collapse in more than half of U.S. investors, according to the survey. Global conflicts only add to the unease: 33% of respondents cited these as a top concern.
The survey found that taxes are a top financial concern for 42% of U.S. investors and for their effect on investments for 37%. Seventy-seven percent said they fear government deficits will lead to higher taxes, 66% worry about shifting tax policies and 51% said they will not benefit from U.S. tax policy changes over the next few years.
Seven in 10 respondents said they understand how taxes affect investments, and two-thirds reported that they prioritize after-tax returns over pre-tax gains.
Amid all this uncertainty, 73% of investors expect market volatility to rise. Their risk appetite varies, with 46% identifying as moderate, 37% as conservative and 16% as aggressive.
Although 58% of U.S. respondents see volatility as a chance to grow wealth, 75% said they prefer safety over performance. Some investor caution is reflected in the narrowing gap between their return expectations and those of advisors: In 2023, investors expected 15.6% above inflation, while advisors expected 7% — a 123% gap.
By 2025, the gap had narrowed, albeit to a still notable 76%.
“These findings — based on surveys conducted prior to the April tariffs — clearly underscore that investors have been sensing rising uncertainty for some time, and that those uncertainties are not likely to abate in the near term,” Dave Goodsell, executive director of the Natixis Center for Investor Insights, said in a statement.
“Investors are looking for answers and clarity about how to keep their portfolios intact while navigating the market’s challenges, and they are turning to advisors and active management to do so.”
Active Strategies and Advisor Support
In a volatile 2025 market, 62% of U.S. investors indicated that they are shifting toward active strategies, unwilling to rely solely on market returns.
Some 80% said they aim to outperform the market, while 43% worry that the “Magnificent 7” tech stocks could drag down index performance and 44% do not think that passive investing offers enough protection.
The survey found that amid ongoing uncertainty, U.S. investors are also placing greater trust in financial advisors. Two-thirds are receiving professional advice, and nearly all said they trust their advisor more than themselves when making financial decisions.
However, few said they want to fully hand over control. Twenty-three percent prefer to decide independently with guidance, 36% see their advisor as a partner and 29% want to stay involved in major decisions.
Sixty-eight percent of advised U.S. investors rely on traditional advisors, according to the survey, while 24% use a hybrid model and 9% rely solely on automation. Just 29% who use financial planners or hybrid advice said they would consider automated advice — even with technological advances — highlighting broad reluctance to go fully digital, Natixis IM said.
Survey respondents working with advisors prioritize clear guidance and personalized coaching, with 49% seeking financial planning advice, 41% valuing accessibility and 39% wanting to feel heard. Their strongest interest lies in retirement planning and broader financial planning services.
Investors are also looking to advisors for help in navigating specific asset classes and strategies, according to the survey.
Tax management strategies: The survey found that interest in tax management grew from 32% in 2021 to 47% in 2025. Most view it as essential to financial planning, and 80% trust their advisor to manage their tax liability.
Natixis IM said this is driving demand for direct indexing and tax-loss harvesting through separately managed accounts.
Respondents showed a limited understanding of how interest rates affect bonds, with only 3% correctly noting that bond prices typically rise when interest rates fall — although future income may decrease. About a third admitted they were unsure.
Fifty-three percent of respondents currently own bonds, but just 28% said they intend to increase their fixed income holdings, with 60% saying they find stocks more attractive.
Private assets: They survey found that interest is rising in private assets; still, only 24% of U.S. respondents currently invest in this category. Thirty-seven percent said private assets are a good way to manage risk in their portfolios, and 36% said their returns are worth the associated fees.
At the same time, 71% consider private assets riskier than public investment, 61% recognize that they require special tax reporting and 43% know that private assets have long holding periods.
Interest in cryptocurrency remains limited among U.S. investors in the survey: Only 13% currently invest, and 15% plan to do so. Two-thirds see it as speculative rather than practical.
While 35% said they expect bitcoin to hit new highs in 2025, just 28% have discussed it with an advisor. Still, 25% think new vehicles like exchange-traded funds could make crypto more appealing.
Similarly, individual investors remain cautious about artificial intelligence, with only 28% seeing it as the investment opportunity of a lifetime. Fifty-four percent believe it is a bubble, and 49% think its risks outweigh the benefits.
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