How COVID-19 Has Affected the Investor Mindset
1
INMOMENT PRESENTS Everything has changed due to the Coronavirus pandemic—including the mindset of your investors. Understanding that mindset is a huge part of your business, so why would you leave it up to guess work or assumptions? Our 2020 Wealth Poll was designed to unearth exactly how affluent investors are feeling about 2021 and where they’re planning to put their assets. Let’s jump into the data and takeaways! We surveyed 1,212 investors with over $100,000 of privately held assets to understand how the unsettled market has affected them, how they feel about their client experience, and where opportunities may lie for investment firms to improve and expand business. How COVID-19 Has Affected the Investor Mindset IG-01164-03-NA | © 2020 INMOMENT, INC ABOUT THE RESEARCH LOOKING FOR MORE? KEY TAKEAWAY #1 790 Mass Affluent Investors 400 High Net Worth Investors 22 Ultra-High Net Worth Investors $100,000 to less than $1,000,000 in investable assets $1,000,000 to less than $10,000,000 in investable assets $10,000,000 or more in investable assets Investors Don’t Expect a Full Recovery Until Late 2021 After a decade of success, COVID-19 has cast a shadow of uncertainty over the global economy—and affluent investors aren’t completely sure what to expect. In fact, an overwhelming majority (64%) said they expect the next twelve months to be volatile. KEY TAKEAWAY #2 Investors Stay the Course Despite investors’ uncertainty concerning the market, 85% of investors say their risk preference has not shifted because of the pandemic. In fact, our results for pre-pandemic risk preference were almost the same as our post-pandemic results. KEY TAKEAWAY #3 Most Have Funds but Many Don’t Plan to Invest For as many affluent investors who plan to stay flat in 2020, the same amount plan to invest more in their portfolio, despite the fact that 78% report that they have available funds. KEY TAKEAWAY #4 Investment Firms Learned the Lessons of 2010 Remember 2010 and the burst of the housing bubble which wreaked havoc on the markets and the economy? In 2010, investors across the board were not happy with how firms responded to the financial crisis. Since that time, investment firms have made significant progress in delivering to their clients. The proof? Investor satisfaction has held steady the highs achieved during the market’s long bull run even in the midst of the pandemic. Financial planning, more proactive advice, and better online tools have made investors much happier with the response to the current crisis. From this same question, we also were able to arrive at the conclusion that affluent investors were more likely to invest if they: Regardless of how investors feel, financial services firms and advisors must be prepared to guide investors through the ever-changing market over the next 12 months! 13% 64% 16% 7% The market will mostly go down CURRENT POST-PANDEMIC The market will be volatile, going up & down The market will mostly go up I have no idea how the market will perform PRE-PANDEMIC 17% 51% 30% 16% 51% 30% VERY CONSERVATIVE Are self-directed investors Believe their investment expertise is higher than average Do not work with a dedicated financial advisor MODERATELY CONSERVATIVE MODERATELY RISKY HIGHLY RISKY HAVE MONEY TO INVEST ALL INVESTORS DIVEST 11%+ DIVEST 1-10% EVEN INVEST 1-10% DIVEST 11&+ 18% 38% 33% 20% 40% 30% 10% 9% Our 2020 Wealth Poll didn’t only look into the effects of COVID-19. We also explored investor satisfaction and loyalty, as well as changes in attitudes and perspective in the last decade. Sound like information you’d like to get your hands on? You can learn more about the 2020 Wealth Poll here! TOTAL = 1,212 INVESTORS OVER THE NEXT 12 MONTHS, WHICH OF THE FOLLOWING BEST DESCRIBES HOW YOU THINK THE STOCK MARKET WILL PERFORM? PRE- VERSUS POST-PANDEMIC RISK PREFERENCE INVESTOR SATISFACTION IN 2010, 2018, AND 2020 TOTAL BANK DISCOUNT MUTUAL FUND INSURANCE REGIONAL FULL SERVICE NATIONAL FULL SERVICE 2010 2018 2020 68% 79% 83% 61% 74% 80% 79% 82% 89% 70% 84% 86% 53% 79% 80% 64% 80% 82% 64% 80% 80% ONE SQUARE = $100,000 ONE PERSON = 10 PEOPLE
Transcript of How COVID-19 Has Affected the Investor Mindset
I N M O M E N T P R E S E N T S
Everything has changed due to the Coronavirus pandemic—including the
mindset of your investors. Understanding that mindset is a huge part of
your business, so why would you leave it up to guess work or assumptions?
Our 2020 Wealth Poll was designed to unearth exactly how affluent
investors are feeling about 2021 and where they’re planning to put their
assets. Let’s jump into the data and takeaways!
We surveyed 1,212 investors with over $100,000 of privately held assets
to understand how the unsettled market has affected them, how they
feel about their client experience, and where opportunities may lie for
investment firms to improve and expand business.
How COVID-19 Has Affected the
Investor Mindset
I G - 0 1 1 6 4 - 0 3 - N A | © 2 0 2 0 I N M O M E N T , I N C
ABOUT THE RESEARCH
LOOKING FOR MORE?
KEY TAKEAWAY #1
790Mass Affluent
Investors
400High Net Worth
Investors
22Ultra-High Net
Worth Investors
$100,000 to less than $1,000,000 in
investable assets
$1,000,000 to less than $10,000,000 in
investable assets
$10,000,000 or more in investable assets
Investors Don’t Expect a Full Recovery Until Late 2021
After a decade of success, COVID-19 has cast a shadow of uncertainty over the global economy—and affluent investors aren’t completely sure what to expect. In fact, an
overwhelming majority (64%) said they expect the next twelve months to be volatile.
KEY TAKEAWAY #2
Investors Stay the CourseDespite investors’ uncertainty concerning the market, 85% of investors say their risk
preference has not shifted because of the pandemic. In fact, our results for pre-pandemic risk preference were almost the same as our post-pandemic results.
KEY TAKEAWAY #3
Most Have Funds but Many Don’t Plan to Invest
For as many affluent investors who plan to stay flat in 2020, the same amount plan to invest more in their portfolio, despite the fact that 78% report that they
have available funds.
KEY TAKEAWAY #4
Investment Firms Learned the Lessons of 2010
Remember 2010 and the burst of the housing bubble which wreaked havoc on the markets and the economy? In 2010, investors across the board were not happy
with how firms responded to the financial crisis. Since that time, investment firms have made significant progress in delivering to their clients.
The proof? Investor satisfaction has held steady the highs achieved during the market’s long bull run even in the midst of the pandemic. Financial planning, more
proactive advice, and better online tools have made investors much happier with the response to the current crisis.
From this same question, we also were able to arrive at the conclusion that affluent investors were more likely to invest if they:
Regardless of how investors feel, financial services firms and advisors must be prepared to guide investors through the ever-changing market over the next 12 months!
13% 64% 16% 7%
The market will mostly go down
CURRENT POST-PANDEMIC
The market will be volatile, going up & down
The market will mostly go up
I have no idea how the market will perform
PRE-PANDEMIC
17% 51% 30%
16% 51% 30%
VERY CONSERVATIVE
Are self-directed investors
Believe their investment expertise is
higher than average
Do not work with a dedicated financial
advisor
MODERATELY CONSERVATIVE MODERATELY RISKY HIGHLY RISKY
HAVE MONEY TO INVEST
ALL INVESTORS
DIVEST 11%+ DIVEST 1-10% EVEN INVEST 1-10% DIVEST 11&+
18% 38% 33%
20% 40% 30%
10%
9%
Our 2020 Wealth Poll didn’t only look into the effects of COVID-19. We
also explored investor satisfaction and loyalty, as well as changes in
attitudes and perspective in the last decade. Sound like information you’d
like to get your hands on?
You can learn more about the 2020 Wealth Poll here!
TOTAL = 1,212 INVESTORS
OVER THE NEXT 12 MONTHS, WHICH OF THE FOLLOWING BEST DESCRIBES HOW YOU THINK THE STOCK MARKET WILL PERFORM?
PRE- VERSUS POST-PANDEMIC RISK PREFERENCE
INVESTOR SATISFACTION IN 2010, 2018, AND 2020
TOTAL BANK DISCOUNT MUTUAL FUND INSURANCE REGIONAL FULL SERVICE
NATIONAL FULL SERVICE
2010
2018
2020
68% 79% 83% 61% 74% 80% 79% 82% 89% 70% 84% 86% 53% 79% 80% 64% 80% 82% 64% 80% 80%
ONE SQUARE = $100,000 ONE PERSON = 10 PEOPLE
