A recent poll conducted by Benzinga and Dig Insights in March reveals that American investors are remaining optimistic about their investment choices despite recent events, including the banking crisis that shook markets.
Fifty-four percent of Americans reported owning stocks, while just 20% reported owning cryptocurrencies, according to the Benzinga and Dig Insights Economic Sentiment tracker. It can be taken as an indication that many Americans are still interested in investing in the market, despite the more recent volatility caused by the regional banking sector.
The poll also suggested that a majority of investors are bullish in the long term. A quarter, or 25%, of Americans plan to invest more in stocks over the next 12 months, showing a strong commitment to investing and a bullish outlook on the market. Only 12% of respondents said they intend to invest less.
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Despite the recent banking crisis, investors remain optimistic about the market's future, and historical data supports the outlook. April has historically been a strong month for the S&P 500 index, which is tracked by the SPDR S&P 500 ETF Trust SPY, and many short-term-outlook investors anticipate the markets will resume their upward trajectory this month.
The banking crisis, however, did highlight concerns about inflation and interest rates. The Federal Reserve hiked interest rates by a quarter of a percentage point at its March meeting, but traders and economists are divided about whether there will be another rate hike at the May 3 meeting.
Although some analysts still predict a soft landing, there are still concerns about the risk of recession, given the downturns in the housing market and manufacturing activity. The New York Fed’s recession model predicts a 54.5% chance of a U.S. recession in the next 12 months.
Despite macro concerns, American investors appear to be remaining optimistic and committed to investing in the market. The Benzinga and Dig Insights poll suggests that investors are confident about their investment choices and are prepared to weather any future storms in the market.
Image by Gerd Altmann from Pixabay
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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