FOSTER CITY, Calif.,
Nov. 19, 2020 /PRNewswire/
-- The stock market can be a bear. As it cycles through both
bull and bear stages, investor attitudes shape how they react to
events. Still, many are unclear about stock market cycles and may
be ill-equipped to assess the impact of major economic events such
as the pandemic or the election, explains MoneyRates.com.
To better grasp the attitudes of American investors and how they
deal with a bear market, the personal finance website conducted a
new survey. Results reveal that individual expectations vary as to
what a bear market is - no single definition appears to be held by
a majority.
The survey finds that the most popular bear market definition
("a loss of 10% or more that took at least a year to recover") is
held by 33.07% of responding investors. Roughly 27% believe that a
bear market is a "loss of 20% or more," the second-most-popular
definition.
Find the full study here: Survey: Are You Ready for a Bear
Market?
"Apparently, people aren't quite sure what to expect from a bear
market, based on the survey responses," says Richard Barrington, MoneyRates' senior financial
analyst and the survey's author. "This includes how much they may
lose and how long the loss could last. More experienced investors
seem to have a keener sense of the damage a bear market can
cause."
Other survey highlights:
- Nearly 44% say a bear market occurred earlier in the year, near
the start of the pandemic.
- The market's decline of about 30% from mid-February to
mid-March seems severe. But it took less than six months for the
markets to recover, explaining why some investors differ on their
memories of this.
- This year suffered falling company earnings but rising stock
prices—a dangerous combination.
- Most investors in the survey report that a bear market would
affect their lifestyle in the coming year.
- Just over 41% report the election as being the biggest
potential threat to the stock market, while nearly 36% cite the
coronavirus as the most significant threat.
Notably, respondents show differences about the best way to
shelter investments from a bear market, with cash equivalents such
as savings accounts being the most popular, followed by
corporate bonds.
The typical American investor, as opposed to seasoned financial
professionals, rarely has the time or resources to follow
conditions that cause stocks to cycle. To get help with steering
investments through cycles investors should consider: asset
allocation funds; robo advisors; and professional financial
advisors.
The happier cousin to the bear market, a bull market is a
sustained rise in the stock market, usually marked by long-lasting
periods that hit record highs, explains Barrington.
"If everyone could predict a bear market, they'd get out in
advance," adds Barrington. "Instead, people tend to pile into
markets as they're hitting their peaks and, conversely, panic out
of them if prices fall."
Methodology
In its Op4G survey, MoneyRates surveyed 251 people who had at least
$25,000 in stock investments.
Barrington is available for interviews.
About MoneyRates
MoneyRates is owned and operated by QuinStreet, Inc.
(Nasdaq: QNST), a leader in providing performance
marketplace technologies and services to the FinTech, financial
services and home services industries. QuinStreet is a pioneer in
delivering online marketplace solutions to match searchers with
brands in digital media. The company is committed to providing
consumers with the information and tools they need to research,
find and select the products and brands that meet their needs.
MoneyRates is a member of QuinStreet's expert Research and
Publishing Division.
Since 1998, MoneyRates has served as a personal finance resource
designed to help readers make the most of their money. In addition
to a variety of financial calculators, MoneyRates researches and
tracks CD, savings, and money market rates offered from over 400
financial institutions across the country to offer expert advice on
banking, investing and retirement planning.
Twitter: @MoneyRates
Facebook: www.facebook.com/MoneyRatesdotcom
Media contact
Charlene Arsenault
Media Outreach Specialist
carsenault@quinstreet.com
Direct +1.508-832-8918
LinkedIn
View original content to download
multimedia:http://www.prnewswire.com/news-releases/ready-for-a-bear-market-moneyrates-clarifies-investor-attitudes-301177347.html
SOURCE MoneyRates.com