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SAVVY INDIVIDUAL INVESTORS BACK BUSH, BUT EXPECT CLINTON WILL WIN -- CAUSING STOCK MARKET TO DROP

 SAVVY INDIVIDUAL INVESTORS BACK BUSH, BUT EXPECT CLINTON WILL WIN
 -- CAUSING STOCK MARKET TO DROP
 Quick & Reilly 500 Fall Survey Shows Experienced Investors Turned
 Dramatically More Cautious on U.S. Economic Outlook, Markets
 NEW YORK, Sept. 16 /PRNewswire/ -- Sophisticated individual investors are likely to vote for George Bush for President, although nearly as many think Bill Clinton will win the November election, ushering in a downturn in the stock market.
 Those are the key findings of the second quarterly survey of individual investor confidence just completed by Wirthlin Group researchers on behalf of Quick & Reilly, Inc., the national retail securities brokerage firm. The Wirthlin Group found that 48 percent of individual investors polled currently expect to vote for President Bush (compared with 34 percent for Governor Clinton), but 46 percent expect Clinton to win. About 13 percent are still undecided as to how they will vote. If Clinton does take the election, the stock market will drop, 45 percent predict, in contrast with their general bullishness surrounding a Bush win. (Only 14 percent see a market decline then.)
 Thomas C. Quick, president of Quick & Reilly, Inc., said, "Our individual investors are uncanny. They were on the mark last June in their caution, when they anticipated a downward turn in the stock market for our first survey of investor sentiment. It is likely they are right again. They are sophisticated, experienced and discerning."
 The Wirthlin Group said that in the three months since the last survey the percentage of savvy individual investors who consider themselves bullish on the market has decreased by one-fourth -- dropping from 41 percent to 29 percent. What's more, 67 percent said that they feel there is too much uncertainty to be buying actively now, up from 61 percent this past Spring.
 In another sign that this group of investors is more cautious now about the stock market, their favored cash allocation for an ideal investment portfolio averaged almost one-third of assets. This figure is in dramatic contrast to the recommendations of many brokerage firms which have recommended cash allocations ranging from 0 to 10 percent since July.
 The Wirthlin Group, a leading national public opinion research firm, solicited responses from more than 500 of Quick & Reilly's most active clients (more than eight of 10 of those polled have purchased or sold stocks, bonds or mutual funds in the past three months) to determine how the economy is affecting their investment activity and attitudes. Wirthlin conducts the investment sentiment survey, called The Quick & Reilly 500, quarterly.
 In addition to analyzing the attitudes of sophisticated investors regarding the election and the stock market, the survey also shows these investors' opinions on strategies for encouraging the economy. Three- quarters believe that fixing the economy should be the most important priority of the next administration. Tax incentives and full restoration of tax deductibility of IRAs (investment retirement accounts) were most favored by eight in 10 investors.
 Other major findings of the Quick & Reilly 500 include:
 Election Impact
 -- Of those individual investors who consider themselves bullish on the market, 54 percent support President Bush.
 -- Of those individual investors who consider themselves bearish on the market, 38 percent support Governor Clinton.
 Market Sentiment
 -- Six in 10 sophisticated individual investors believe interest rates will stay the same over the next six months. A total of 25 percent predicted an interest rate rise, and 14 percent see a decline.
 -- About two-thirds (65 percent) of sophisticated individual investors indicated that the economic environment of the past few months has made them more cautious about investing. This compares with 48 percent this past Spring.
 -- The movement to a more cautious view of the market is strongest among younger (under 49) and middle-aged (50-64) investors as well as those who live in the West and the South.
 Recharging the Economy
 -- President Bush supporters are more likely to favor tax incentives (91 percent) and capital gains reduction (89 percent) as ways to revitalize the economy. Governor Clinton supporters, by contrast, are more likely to favor reducing the budget deficit by cutting military spending (88 percent).
 -- Both President Bush and Governor Clinton supporters strongly favor increased tax deductibility of IRAs as a mechanism for stimulating the economy (85 percent of Bush supporters and 82 percent of Clinton backers).
 -- While only a minority of individual investors favor cutting entitlement programs -- including Social Security -- men are more likely to support this approach than are women (43 percent vs. 24 percent).
 The Quick & Reilly 500 is compiled from the results of a survey conducted among investor clients of Quick & Reilly, Inc. The Wirthlin Group interviewed 502 individuals nationwide between Sept. 1 and 5. Sample error for a group of this size is plus or minus 5 percent, at the 95 percent confidence level. Quick & Reilly, Inc., was the first New York Stock Exchange (NYSE) member firm to offer discounted commissions to the nation's most sophisticated individual investors. Headquartered in New York, Quick & Reilly, Inc. services its clients through 77 offices in every major city across the country.
 The Quick & Reilly Group, Inc. is also the holding company for U.S. Clearing Corp., which provides clearing and execution services for 156 brokerage and banking firms in addition to 77 Quick & Reilly offices; and JJC Specialist Corp., which makes markets in the stocks of more than 100 NYSE listed companies.
 -0- 9/16/92
 /CONTACT: Thomas C. Quick, president of Quick & Reilly, 212-747-4840; or Bill Reddig or Lisa Kovitz of Hill and Knowlton, 212-697-5600, for Quick & Reilly/ CO: Quick & Reilly, Inc. ST: New York IN: FIN SU: ECO


GK -- NY007 -- 9943 09/16/92 08:46 EDT
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Date:Sep 16, 1992
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