John Hancock Financial recently announced the results of its quarterly measure of investors' views on a range of investment choices, life goals and economic outlook. For the third quarter of 2011, the John Hancock Investor Sentiment Index score is +10, a significant drop from the +18 score in the year's second quarter and from the +22 score of the inaugural index in Q1 2011.
The third quarter survey was conducted in mid-August on the heels of the U.S. government's debt ceiling debate and the decision by Standard & Poor's to downgrade the U.S. credit rating. Results of the survey indicate that market volatility and concerns about the impact of the national debt ceiling agreement have made many investors more averse to equities.
In contrast with previous quarters, fewer investors have a positive view of the equity markets, while an increasing share of respondents are more comfortable putting their money into fixed or liquid vehicles such as bonds or cash. Fewer than four out of ten investors surveyed feel they are in a better financial position now than they were two years ago, in the middle of the recession, while the share of investors who feel they are worse off has risen.
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