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FINANCIAL ADVISORS PREDICT CLINTON WILL RAISE TAXES WITHIN SIX MONTHS; VAST MAJORITY BELIEVE CLINTON WILL STIMULATE ECONOMY IN FIRST 100 DAYS

FINANCIAL ADVISORS PREDICT CLINTON WILL RAISE TAXES WITHIN SIX MONTHS; VAST MAJORITY BELIEVE CLINTON WILL STIMULATE ECONOMY IN FIRST 100 DAYS
 BOSTON, Nov. 9 /PRNewswire/ -- More than one-half of financial advisors with national and regional brokerage firms surveyed by the Putnam Companies believe that President-elect Bill Clinton will raise taxes within the first six months following his inauguration. Putnam today released the results of the "Putnam Survey of Investment Reaction from Main Street to the 1992 Presidential Election."
 The nationwide fax poll of branch managers at retail securities firms offers views and concerns about President-elect Bill Clinton and the impact his administration will have on the economy and the investment climate.
 Fifty-six percent of the financial advisors surveyed expressed concern that taxes will increase under the Clinton administration. For that reason, 73 percent indicated they will be recommending tax-exempt bonds and tax-exempt bond funds as good investments for their clients. And nearly half (46 percent) of both national and regional brokers surveyed indicated their clients are most concerned about interest rates, closely followed by taxes.
 "The survey results clearly express the ongoing concerns about the economic recovery, how the Clinton administration will impact taxation and what products and services make sense in this new environment," said Stephen E. Gibson, managing director and national marketing director at the Putnam Companies. He added, "Based on this perspective of the environment, the brokers' recommendations and focus on tax-exempt investment products is interesting and appropriate."
 The majority, 61 percent, indicated that Clinton's greatest task in his first 100 days is to stimulate the economy through investment incentives and job creation. It is noteworthy that 70 percent of those polled indicated they have confidence that Clinton will be able to accomplish this task.
 However, 54 percent do not expect to see improvements until one year from now, and 29 percent believe it will take even more time for the economy to be revitalized.
 Opinions at National Firms Differ from Regional Firms
 The senior financial advisors at national firms are more optimistic about the Clinton presidency's potential impact on the investment climate than their regional peers. As a group, 83 percent of the national brokers surveyed by Putnam predict the investment climate will be better or unchanged for the individual investor under a Clinton administration, whereas only 48 percent of regional retail brokers predict the investment climate will improve or remain unchanged.
 Areas of Investment Recommendation
 In making recommendations to clients in order to achieve their investment goals under the new administration, 88 percent of the brokers indicated they would increase or at least maintain investments in equities and equity mutual funds. Eighty-six percent said they would discourage clients from investing in taxable bonds or taxable bond funds.
 Sixty-six percent of the brokers surveyed indicated they would recommend insurance and variable annuities as good investments for their clients.
 Forty-four percent of those surveyed indicated they anticipated better opportunities in the stock market under a Clinton administration. "We found it interesting to note that brokers at national firms were more bullish on the stock market -- 75 percent indicating that the market will offer better investment opportunities -- than brokers at regional firms -- 31 percent of whom view the Clinton administration as potentially affecting the stock market in a positive way," commented Gibson.
 The Putnam Companies is one of the nation's oldest and largest money management firms, with 54 years of experience in equity and fixed-income mutual funds investing and a 22-year track record managing institutional funds. Currently, Putnam manages nearly $60 billion domestically and internationally for two million individuals and over 200 institutional clients. This Boston-based firm also has offices in London and Tokyo.
 NOTE: The survey was conducted and the results were tabulated by Edelman Research, Inc.
 -0- 11/9/92
 /CONTACT: Nancy Fisher of Putnam, 617-292-1608; or Matthew Harrington of Edelman Public Relations Worldwide, 212-704-8103, for Putnam/ CO: The Putnam Companies ST: Massachusetts IN: FIN SU: ECO


GK-TS -- NY086 -- 8815 11/09/92 14:58 EST
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Date:Nov 9, 1992
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