By Erin McCarthy
Investors are feeling more optimistic than they have in years
but remain concerned about stagnant income, according to a survey
conducted by Wells Fargo & Co. and Gallup.
The Wells Fargo/Gallup Investor and Retirement Optimism Index
jumped to 46 in the third quarter, its highest level in seven
years, with much of the gains stemming from investors' heightened
optimism about economic growth and the labor market, according to
the survey. However, six in 10 of those surveyed said they are
doing no better financially than they were five years ago,
signaling limited progress during the U.S. economy's gradual
recovery.
The quarterly survey measures the perceptions of more than 1,000
U.S. investors with $10,000 or more in investible assets.
Investor optimism also still remains well below its pre-2008
recession average, with investors still skeptical about growing
their savings in the stock markets and about their ability to
increase their income.
The majority of nonretired investors expect their income to be
stagnant, as 61% of nonretirees with $100,000 or more in assets
said they don't foresee a time when their income will be
significantly higher than it is today.
"Investors are saying they're more optimistic about the economy
and the job market. But nonretirees worry about their ability to
earn more in their lifetime," said Karen Wimbish, director of
retail retirement at Wells Fargo. "Clearly, average investors have
not forgotten their recession experiences."
In addition, investors remain wary of the stock market, with 60%
saying caution toward investing in the market is "wise" since it
protects them from possible market losses. The majority, however,
still actively choose stocks for their long-term investment
accounts, with just 29% avoiding stocks in long-term accounts.
Write to Erin McCarthy at erin.mccarthy@wsj.com
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