(Denver – November 30, 2023) — Janus Henderson Investors just released the results of its Investor Survey: Insights for a Brighter Future, shedding light on how individual investors navigate the dynamic market landscape. The survey of 1,000 mass affluent and high-net-worth investors with $250,000 or more in investable assets unraveled their concerns amid political uncertainty, volatile markets, and economic unpredictability.
Janus Henderson Investors’ Investor Insights Survey was conducted by 8 Acre Perspective among 1,000 investors nationwide with $250,000 or more in investable assets. The survey was conducted from July to August in 2023.
Key Findings:
Political Landscape Dominates Anxiety:
The survey indicates that 49% of investors are highly concerned about the impact of the 2024 U.S. presidential election on their finances, surpassing worries about persistent inflation (35%), risk of recession (29%), rising interest rates (27%), and poor stock market performance (20%).
On the eve of a potentially tumultuous election year against uncertain interest rates and economic backdrop, investors are naturally fearful. These fears run headlong into what seven out of 10 investors believe is an increasingly challenging market. Given this uncertainty, it is perhaps not surprising that just as many investors feel anxious about their finances (34%) as feel very confident in achieving their goals (36%).
Notably, older investors are more concerned about the election than younger investors. Nearly 7 in 10 (69%) members of the Silent Generation (ages 75+) are very concerned about the 2024 US Presidential election compared to just 37% of Millennials (ages 25-40).
“Despite investors’ concern about the 2024 U.S. Presidential election, results haven’t historically been a reason to exit the capital markets,” said Matt Sommer, Head of Specialist Consulting Group at Janus Henderson Investors. “In fact, looking back at S&P 500 returns from 1937 through 2022, the average annual return was 9.9% in presidential election years, and 12.5% in nonelection years.”
Age Disparities in Election Concerns:
Notably, older investors, especially those from the Silent Generation (ages 75+), exhibit higher anxiety levels about the 2024 U.S. Presidential election, with 69% expressing significant concern. In contrast, only 37% of Millennials (ages 25-40) share similar apprehensions.
Historical Perspective on Elections:
Despite concerns, historical data presented by Matt Sommer, Head of Specialist Consulting Group at Janus Henderson Investors, suggests that presidential election years from 1937 through 2022 witnessed an average annual S&P 500 return of 9.9%, dispelling concerns about historical market performance during elections.
Challenges in Current Market Environment:
With 71% of investors finding investing more challenging in recent years and 61% noting that the cost of living is outpacing their income and investments, there is a growing demand for active management and financial education.
Preference for Active Management:
Among respondents holding mutual funds or ETFs, 66% express a preference for active funds, highlighting a demand for active management in portfolios. Investors with financial advisors are more inclined toward active funds (34%) compared to those without advisors (18%).
Focus on Financial Education:
Across all generations, 86% of investors express a keen interest in increasing their financial knowledge. Younger investors, particularly Millennials and Gen-Xers, exhibit robust enthusiasm, with 96% expressing meaningful interest in improving financial education.
Role of Financial Advisors:
Investors working with financial advisors showcase higher satisfaction levels (65% very satisfied) and are more likely to be content with their financial situations (52%) compared to those without advisors (40%).
Advisor Communication Preferences:
While traditional communication methods such as telephone (68%), in-person (54%), and email (53%) remain popular, video conferencing is underutilized (28%). However, 52% of investors express comfort with video conferences, presenting an opportunity for technology integration.
The survey underscores the multifaceted concerns of investors, emphasizing the need for proactive strategies, financial education, and adaptive communication methods by industry stakeholders, particularly in addressing the prevailing apprehensions related to the 2024 U.S. presidential election.
Janus Henderson Group is one among big global active asset manager dedicated to helping clients define and achieve superior financial outcomes through differentiated insights, disciplined investments, and world-class service.
As of September 30, 2023, Janus Henderson had approximately US$308.3 billion in assets under management, more than 2,000 employees, and offices in 24 cities worldwide. Headquartered in London, the company is listed on the NYSE and ASX. (GT)
