Affluent Americans Lower Expectations of Financial Future.Business Editors PRINCETON Princeton, borough (1990 pop. 12,016) and surrounding township (1990 pop. 13,198), Mercer co., W central N.J.; settled late 1600s, borough inc. 1813, township est. 1838. A leading education center, it is the seat of Princeton Univ. , N.J.--(BUSINESS WIRE)--April 9, 2002 Expected 9.5% Annual Financial Return For Next Decade Down From 13.5% Reported Just After September 11 Attacks September 11 attacks Series of airline hijackings and suicide bombings against U.S. targets perpetrated by 19 militants associated with the Islamic extremist group al-Qaeda. Respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. Forecast 7.6% Increase In Stock Market Over Next Six Months Affluent Americans have reduced their expectations on annual financial returns over the next decade to single-digit rates, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a new study by Opinion Research Corporation. The 9.5% annual market return now expected over the next ten years is considerably below the 13.5% reported just after the terrorist attacks of September September: see month. 11 and the 12.9% rate reported in August the month before. This study - the latest in a series detailing the financial profile of affluent Americans - regularly tracks the changes in their financial returns, asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. , expectations and attitudes. For the purposes of these surveys, "affluent" is defined as having investable assets of $100,000 or more, exclusive of primary residence. "Recent events like the September 11 attacks, the collapse of Enron Enron A U.S. energy-trading and utilities company that housed one of the biggest accounting frauds in history. Enron's executives employed accounting practices that falsely inflated the company's revenues, which, at the height of the scandal, made the firm become the seventh and other incidents around the world have greatly tempered the previous high level of expectations of affluent Americans, which are now much more grounded in reality," says Elliot Elliot is a common last name, and may refer to any one of the various people bearing that name. See . It is also a first name, once rare, now becoming more common. As a first or last name, it can be spelled Elliot, Eliott, Eliot, or Elliott. Savitzky, Senior Vice President and Director of the Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Practice of Opinion Research Corporation. "Importantly, however, they still see significant growth - at more than twice the level of inflation. This population, whose financial activities are essential to the economy's overall well being, will continue to invest in the stock market over the long term." In addition, the respondents forecast that the stock market will increase by 7.6% over the next six months. "What's significant about this finding," says Savitzky, "is that after September 11 nearly half (46%) of this audience accurately predicted that the stock market would rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective within six months." Among the other findings in the newest edition of the Opinion Research Corporation study:
- 58% of affluent Americans still working participate in retirement plans like
401Ks, 403bs, Keoghs, etc.
- Roughly the same percentage of affluent Americans' portfolios improved (36%)
as decreased (37%) in value over the past year. In addition, directly
reflecting the general rebound of the economy, more than three times of number
(36% vs. 10%) of affluent Americans now report that their portfolios "increased
significantly/somewhat" over the past year.
Percentage of Investable Assets
March 2002 Post 9/11 2001 Summer 2001 Spring 2000
----------------------------------------------------
Equities 37.0% 34.5% 37.7% 38.9%
Cash/Equivalents 20.3% 22.2% 18.9% 19.2%
Fixed Income 12.7% 15.0% 14.2% 14.5%
Other Investments 30.0% 28.3% 29.2% 27.4%
- Mutual funds (held in 63% of portfolios), individual stocks (61%) and IRAs (60%) are the investment vehicles most widely held by affluent Americans
- 58% of affluent Americans still working participate in retirement plans like
401Ks, 403bs, Keoghs, etc.
- Roughly the same percentage of affluent Americans' portfolios improved (36%)
as decreased (37%) in value over the past year. In addition, directly
reflecting the general rebound of the economy, more than three times of number
(36% vs. 10%) of affluent Americans now report that their portfolios "increased
significantly/somewhat" over the past year.
Has the Value of Your Savings and Investments
Increased or Decreased?
March 2002 Post September 11 August 2001 vs.
Year Earlier
----------------------------------------------
Increased Significantly
/Somewhat 36% 10% 44%
Decreased Significantly
/Somewhat 37% 58% 31%
Stayed the Same 27% 30% 24%
- Over the past 12 months, the attacks of September 11 had "the
greatest effect on financial philosophy" of affluent Americans
Attacks of September 11 29%
Bursting of dot.com bubble 18%
Enron collapse 16%
Warfare on terrorism 10%
None of these 23%
This report presents the findings of two waves of a telephone survey conducted among an national probability sample of 2044 adults comprising 1012 men and 1032 women 18 years of age and older, living in private households in the continental United States United States territory, including the adjacent territorial waters, located within North America between Canada and Mexico. Also called CONUS. . From the 2044 adults, we screened 390 affluent Americans for inclusion in our survey. An affluent American is defined as those individuals that have household assets in excess of $100,000, not including their primary residence. The margin of error surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the affluent sample is +/- 5 percentage points. The interviewing was conducted from March 15-24, 2002. Opinion Research Corporation, founded in 1938, is a global strategic services firms that helps clients improve their return on decision making through the integration of information, research and consulting. The Company's approach creates teams of strategists, researchers and implementation experts who work with clients worldwide to develop and carry out a blueprint blueprint, white-on-blue photographic print, commonly of a working drawing used during building or manufacturing. The plan is first drawn to scale on a special paper or tracing cloth through which light can penetrate. for success tailored to their organization and the audiences they serve. The Company's website is located at www.opinionresearch.com. This release contains, within the meaning of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provision of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are based on management's beliefs and assumptions, current expectations, estimates and projections. Many of the factors that will determine the Company's financial results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties and therefore actual results may materially differ. The Company disclaims any obligation to update any forward-looking statements whether as a result of new information, future events, or otherwise. Important factors and risks that may affect future results are described in the Company's filings with the Securities and Exchange Commission, copies of which are available upon request from the Company. |
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