Investors are more confident in the markets and more optimistic about their retirement prospects than they were shortly after the 2008 recession, a TD Ameritrade survey has found.
More than two-thirds of investors surveyed said 2013 was a good or excellent year for them financially, as major indexes saw large gains.
“While many Americans took a more cautious financial stance over the past few years, we continue to see signs that the recession’s scars are fading,” said J.J. Kinahan, chief strategist for TD Ameritrade. “It appears investors are feeling the euphoria of a more positive year and are beginning to engage in the market more.”
The Omaha-based discount online brokerage compared results of similar online surveys conducted in 2010 and again in 2013.
Nearly 80 percent of investors surveyed in December 2013 said they were putting the same amount or more new money into the markets, versus 67 percent of investors who said so in a 2010 survey. And fewer investors report investing less in the markets since the recession, from 32 percent in 2010 to 21 percent in 2013.
TD Ameritrade said investors also appear to be recouping losses realized in the recession. In 2013, more investors, 67 percent, said they were ahead of schedule or on track with their retirement savings goals than in 2010, when just 53 percent said they were on track.
Even after a strong 2013, 84 percent of investors surveyed said they expected 2014 will be just as good or better for their personal finances.
Two in five couples were talking to their spouse or partner more frequently about finances than they did before the recession, conversations TD Ameritrade called a “silver lining” of the recession.
While investors said they were more likely to put money into the markets, they also reported they were less likely to put off making major purchasing decisions: Fewer in 2013 said they were putting off travel, buying a car or buying a home than were delaying these purchases in 2010.
More details about the annual Financial Review & Outlook Survey are at www.amtd.com.
A separate TD Ameritrade measure, the monthly Investor Movement Index, also reveals positive investor sentiments, rising in December to its highest reading in four years. The index shows investors who are engaged in the markets are positioning their portfolios in a “bullish” manner, the firm said.