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SURVEY SAYS CONSUMERS REMAIN CAUTIOUS ABOUT INVESTING IN STOCK MARKET
| While consumers believe the investment climate is improving, only 25 percent say they will invest in stocks over the next six months, according to a recent Conference Board survey. Less than 46 percent describe the current investment climate as "bad," down from a year-ago reading of more than 62 percent. Despite improved confidence in the investment climate, consumers continue to remain cautious when it comes to putting their money in the stock market, according to the report. CDs and money market funds ranked only slightly more favorably than stocks, with about 26 percent of consumers indicting they would buy them over the next six months. Fifteen percent said they plan to buy bonds. "While consumers' confidence in financial markets has been on the mend, the latest round of scandals in key investment sectors could severely undo the progress made over the past year," said Lynn Franco, director of The Conference Board's Consumer Research Center. On a forward-looking basis, 44 percent said current conditions were "normal," according to the report. Approximately 65 percent of consumers expect no change in the investment climate over the next six months, up from nearly 59 percent a year ago. Less than 12 percent of consumers expect investment conditions to worsen in the short term, up slightly from September 2002. |