Nearly Half of Investors Believe the 2024 Election Will Have a … – Nationwide Newsroom
Columbus, OH As the political noise leading up to national elections in 2024 begins its long crescendo, many American investors are nervously considering implications for their investment portfolios. Regardless of political affiliation, nearly half (45%) of investors believe the results of the 2024 U.S. federal (presidential and congressional) elections will have a bigger impact on their retirement plans and portfolios than market performance, according to Nationwides ninth annual Advisor Authority survey, powered by the Nationwide Retirement Institute.
In addition to general pessimism regarding the elections impact on retirement prospects, investors fear the impact of new policy and opposing party rule on the U.S. economy. Nearly one in three (32%) investors believe the economy will plunge into a recession within 12 months if the political party with which they least align gains more power in the 2024 federal elections. Roughly the same percentage (31%) believe the party they least align with gaining more power in office will negatively impact their future finances, and 31% believe their taxes will increase within 12 months.
As we get closer to the 2024 election, were going to see more messaging and campaign ads that portray worst case scenarios, creating anxiety in investors that can lead to short-sighted, emotional decisions, said Eric Henderson, President of Nationwide Annuity. Its important for investors to not get caught up in the what ifs, and instead focus on what they can control. A proactive step would be having a conversation with their advisor or financial professional and establishing a long-term plan or revisiting the plan they already have in place to ensure it remains aligned with their goals regardless of which party takes control in Washington.
Recession fears are strong across party lines Some issues are viewed differently across party lines. More than half (57%) of investors who identify as Democrats say market performance will have a bigger impact on their retirement plans and portfolios than the results of the 2024 election, compared to 47% of investors who identify as Republicans.
However, Republicans tend to brace for election results more than their Democrat counterparts. More than two thirds (68%) of Republican investors believe the outcome of a presidential election will have a direct, immediate and lasting impact on the performance of the stock market, compared to 57% of Democratic investors. Independent investors are the least concerned with election results; fewer than half (40%) feel the results of next years election will have a bigger impact on their retirement plans and portfolios than market volatility the lowest of the three primary political demographic groups.
While its natural to feel the party you support will deliver the best economic outcome, history tells us that these instincts can be blown out of proportion, said Mark Hackett, Chief of Investment Research for Nationwide. Remember that election results in either partys favor have historically had little impact on future investment returns. Thats why its important to apply a strong filter to election news coverage to maintain an objective understanding of the events shaping our world. Its best to stay focused on the fundamental drivers of investment performance (e.g., company earnings, revenue growth, profit margins, etc.) and leadinindicators of economic conditions.
Older investors are more fearful The general fear of a recession is magnified for those closest to retirement ahead of next years election, as any wrong decision could have a lasting impact on how they live through retirement. Pre-retiree investors (defined as non-retired investors aged 55-65) are more concerned about an impending economic recession (50%) than investors overall (41%). Pre-retirees and those already in retirement are more concerned about inflation than investors overall (66%, 66% vs. 61%, respectively).
As a result, pre-retirees are planning to be more conservative with their assets than other investors perhaps because they dont have the time to recoup losses. One third (33%) of pre-retiree investors are managing their investments more conservatively in anticipation of next years election, compared to just 31% of all non-retired investors. In addition, just 12% of pre-retirees and 4% of retired investors plan to invest more aggressively in anticipation of next years election.
Economic fears spur changes to spending As campaigning and political punditry ramp up, economic factors are still top of mind for those saving for retirement.
Overall, investors who are not retired see inflation (47%), an increased cost of living (42%), and a potential recession (31%) as the greatest long-term challenges to their retirement portfolios. To compensate, they are changing their spending and investing habits, including making adjustments to cut spending and ensure a timely retirement.
To save more for retirement in the current environment, one third (33%) of investors are avoiding unnecessary expenses, such as vacations, jewelry, and shopping sprees over the next 12 months. A quarter (25%) of non-retired investors also say they will need to work longer to save money for retirement in case Social Security runs out of money, a hard reality that is projected in 10 years, according to the most recent Social Security Trustees Report.
Despite pulling back spending and adjusting investments as political pressures and economic turbulence collide, investors are entering election season on a cautiously optimistic note. Recession fears remain elevated but are down slightly from last year four in five (80%) investors are now concerned about a U.S. recession in the next 12 months, compared to 85% in 2022. Four in ten (40%) of all investors and 32% of pre-retirees describe their financial outlook for the next 12 months as optimistic.
Advisors empathize with investor concerns Financial advisors understand the fears that can stem from changes in Washington and can help investors navigate through it. Like investors, financial advisors view inflation (46%) as the most immediate challenge to their clients retirement portfolios. However, they are not immune to a partisan bias; 38% believe the stock market will be volatile for the 12 months following the election if the party they least align with gains more power after next years federal elections.
In the face of volatility spurred on by partisan noise and a potential exchange of power in Washington, advisors still maintain a more balanced, nuanced view of the election than their clients, in part because many have designed long-term strategies to protect them against volatility. Despite election jitters, most advisors (56%) believe staying the course i.e., not changing their clients investment strategies is the best course of action in an election year.
With this approach in mind, advisors are recommending and implementing their strategies accordingly. Almost all (96%) currently have a strategy in place to help their clients protect their assets against market risk, an increase from 92% in the last 12 months.
Annuities (80% vs. 78%), diversification and noncorrelated assets (72% vs. 57%), and liquid alternatives such as mutual funds or ETFs (54% vs. 31%) all saw at least a slight increase as solutions used by advisors to help their clients protect their assets against market risk in the last year.
While elections are important, and its good to be engaged in our democratic process, making emotional decisions based on what you think will happen runs the risk of derailing your retirement goals, said Henderson. Advisors and financial professionals should seize the opportunity to engage with their clients to reinforce the importance of sticking to their long-term plan. Another way to address client anxiety is to help them understand the value of protection solutions, like annuities, that guarantee income in retirement and guard against market volatility regardless of who ends up winning the election.
For additional insights on this survey data, see our infographic.
Nationwides ninth annual Advisor Authority study powered by the Nationwide Retirement Institute explores critical issues confronting advisors, financial professionals and individual investorsand the innovative techniques that they need to succeed in todays complex market.
About Advisor Authority: Methodology The research was conducted online within the U.S. by The Harris Poll on behalf of Nationwide from August 14-30, 2023, among 507 advisors and financial professionals and 2,404 investors ages 18+ with investable assets (IA) of $10K+. Advisors and financial professionals included 274 RIAs, 196 broker-dealers, 143 wirehouse and 52 other financial professionals. Among the investors, there were 636 Mass Affluent (IA of $100K-$499K), 529 Emerging High Net Worth (IA of $500K-$999K), 402 High Net Worth (IA of $1M-$4.99M) and 219 Ultra High Net Worth (IA of $5M+), as well as 618 investors with $10K to less than $100K investable assets (Less affluent). Investors included a subset of 464 pre-retirees age 55-65 who are not retired.
Raw data from advisors were not weighted and are therefore only representative of the individuals who completed the survey. Investor data are weighted where necessary by education, age by gender, race/ethnicity, region, marital status, household size, employment, household income, investable assets, and propensity to be online to bring them in line with their actual proportions in the population. To ensure the investor sample was representative, the data were initially weighted separately for those with investable assets of $10K to less than $100K and those with $100K+ and then post-weighted/combined into a total investor group. Data for the subset of pre-retirees age 55-65 who are not retired were weighted separately as needed by education, age by gender, race/ethnicity, region, marital status, household size, employment, household income, investable assets and propensity to be online.
Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within + 2.7 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. The sample data for the subset of pre-retirees age 55-65 who are not retired is accurate to within + 5.6 percentage points using a 95% confidence level.
All sample surveys and polls, whether or not they use probability sampling, are subject to other multiple sources of error which are most often not possible to quantify or estimate, including, but not limited to coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments.
About The Harris Poll The Harris Poll is one of the longest running surveys in the U.S. tracking public opinion, motivations and social sentiment since 1963 that is now part of Harris Insights & Analytics, a global consulting and market research firm that delivers social intelligence for transformational times. We work with clients in three primary areas: building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible. To learn more, please visitwww.theharrispoll.com.
Follow this link:
Nearly Half of Investors Believe the 2024 Election Will Have a ... - Nationwide Newsroom
- NFL Schedule Release: the Super Bowl for Ticket Sales, Social Media - Sportico - May 15th, 2024 [May 15th, 2024]
- Emplifi Earns Nine 2024 Top Rated Awards From TrustRadius - Martechcube - May 15th, 2024 [May 15th, 2024]
- Let them create: Social media marketing expert weighs in on working with creators amid potential TikTok ban - eMarketer - May 15th, 2024 [May 15th, 2024]
- Aki Technologies and @dudewithsign Partnership Promotes Elevated Social Marketing Standards - EIN News - May 15th, 2024 [May 15th, 2024]
- CP LAND Wins Asia's Best Social Media Advertising Campaign - Bangkok Post - May 15th, 2024 [May 15th, 2024]
- Social Media Market 2024-2030 Giants Spending is Going To Boom | Sprout Social, Brand24, Statusbrew, AgoraPulse ... - openPR - May 15th, 2024 [May 15th, 2024]
- Study: 55% of businesses plan to increase their use of AI tools in social media strategies - Marketing Interactive - May 15th, 2024 [May 15th, 2024]
- Fast facts: What's the social sentiment like as Lawrence Wong becomes PM? - Marketing Interactive - May 15th, 2024 [May 15th, 2024]
- Social Media Management Market is expected to reaching nearly US$ 98.49 Bn in 2030 As Revealed In New Report - WhaTech - May 15th, 2024 [May 15th, 2024]
- Using LinkedIn to Increase Your Sales - Social Media Examiner - May 11th, 2024 [May 11th, 2024]
- Using LinkedIn to Increase Your Sales - Social Media Examiner - May 11th, 2024 [May 11th, 2024]
- AI social media post generator and manger Unum saves time - Cult of Mac - May 11th, 2024 [May 11th, 2024]
- AI social media post generator and manger Unum saves time - Cult of Mac - May 11th, 2024 [May 11th, 2024]
- Op-Ed | How Long Will the Luxury Myth Last? - The Business of Fashion - May 11th, 2024 [May 11th, 2024]
- Op-Ed | How Long Will the Luxury Myth Last? - The Business of Fashion - May 11th, 2024 [May 11th, 2024]
- Social Stealth: The Art of Marketing Without Mentioning It - YourStory - May 11th, 2024 [May 11th, 2024]
- Social Stealth: The Art of Marketing Without Mentioning It - YourStory - May 11th, 2024 [May 11th, 2024]
- TikTok is first social media platform to label AI-generated content - Marketing Beat - May 11th, 2024 [May 11th, 2024]
- TikTok is first social media platform to label AI-generated content - Marketing Beat - May 11th, 2024 [May 11th, 2024]
- The Power of Influencer Marketing in Direct Selling: Leveraging Social Media to promote brand - Indiantelevision.com - May 11th, 2024 [May 11th, 2024]
- The Power of Influencer Marketing in Direct Selling: Leveraging Social Media to promote brand - Indiantelevision.com - May 11th, 2024 [May 11th, 2024]
- The Top 30 Social Media Influencers Worldwide - Search Engine Journal - May 5th, 2024 [May 5th, 2024]
- Global social media ad spend to approach 200bn in 2024 - Marketing Week - May 5th, 2024 [May 5th, 2024]
- 16 Of The Best Social Media Marketing Courses in 2024 - Search Engine Journal - May 5th, 2024 [May 5th, 2024]
- Heres what Bumble was teasing with its Renaissance art-themed Instagram posts - Ad Age - May 5th, 2024 [May 5th, 2024]
- LinkedIn Data Shows Social Media Marketing is the Most In-Demand Skill on the Platform - Digital Information World - May 5th, 2024 [May 5th, 2024]
- SEC charges Trump Media auditor with 'massive fraud' on hundreds of companies, imposes lifetime ban - CNBC - May 5th, 2024 [May 5th, 2024]
- Compliance makes social media healthcare marketing hard but creativity always wins - The Drum - May 3rd, 2024 [May 3rd, 2024]
- LinkedIn Updates: Short-Form Video, Premium Company Pages, and More - Social Media Examiner - May 3rd, 2024 [May 3rd, 2024]
- Humanizing Brands: How brands are creating authentic connections through social media - Adgully - May 3rd, 2024 [May 3rd, 2024]
- A2Z Media Celebrates Nissan Qatar's Award Wins for Marketing Performance and Social Media | LBBOnline - Little Black Book - LBBonline - May 3rd, 2024 [May 3rd, 2024]
- Social Media Analytics Market Sees Unprecedented Growth Driven by the Growing Influence of Social Media on ... - StreetInsider.com - May 3rd, 2024 [May 3rd, 2024]
- Executives from top Memphis-area social media firms weigh in on trends, AI - The Business Journals - May 3rd, 2024 [May 3rd, 2024]
- Master Social Media Marketing with Tips from Small Business Experts - Small Business Trends - May 3rd, 2024 [May 3rd, 2024]
- Influencer relationships (with consumers & brands) are evolvingwhat does that mean for marketers? - Sprout Social - May 3rd, 2024 [May 3rd, 2024]
- What is influencer marketing? Grow your market through social media - Simply Business knowledge - May 3rd, 2024 [May 3rd, 2024]
- The Rise of AI Influencers: Exploring the Future of Social Media - AutoGPT - May 3rd, 2024 [May 3rd, 2024]
- As TikTok ban threatens stability in social media ecosystem, some brands settle into the fediverse - Digiday - April 28th, 2024 [April 28th, 2024]
- Gen Zers in marketingwhy executives must embrace their ideas for social media success - Ad Age - April 28th, 2024 [April 28th, 2024]
- 9 Best Business Automation Software in 2024 - eWeek - April 28th, 2024 [April 28th, 2024]
- The 2024 Influencer Marketing Report - Sprout Social - April 28th, 2024 [April 28th, 2024]
- Why the U.S. Is Forcing TikTok to Be Sold or Banned - The New York Times - April 28th, 2024 [April 28th, 2024]
- Social media marketing strategies to avoid in 2024 - Android Headlines - April 28th, 2024 [April 28th, 2024]
- Time to Buy Meta Platforms (META) and Other Social Media Stocks as Earnings Approach? - Yahoo Finance - April 28th, 2024 [April 28th, 2024]
- A US TikTok ban could take a bite out of small businesses - BBC.com - April 28th, 2024 [April 28th, 2024]
- How Pastor Chad Nedohin Helped Turn Trump Media Into a Meme Stock - The New York Times - April 28th, 2024 [April 28th, 2024]
- Content That Triggers Massive Reach on Social Media - Social Media Examiner - April 20th, 2024 [April 20th, 2024]
- APA report calls on social media companies to take responsibility to protect youth - APA Psychology News - April 20th, 2024 [April 20th, 2024]
- AirChat Uses Voice Technology to Stand Out in Social Media Market - PYMNTS.com - April 20th, 2024 [April 20th, 2024]
- Gen Z is turning traditional marketing on its head, making social media their primary marketplace, entertainment hub ... - CXOToday.com - April 20th, 2024 [April 20th, 2024]
- Influencers Harness AI to Boost Fame and Fortune - PYMNTS.com - April 20th, 2024 [April 20th, 2024]
- Trump's social media company will go public after merger with shell company is approved - WDSU New Orleans - March 24th, 2024 [March 24th, 2024]
- Navigating the Uncharted Territory of Social Media Marketing - WebProNews - March 24th, 2024 [March 24th, 2024]
- YouTube Updates: Shorts Features, Creator Tools, Podcasts, and More - Social Media Examiner - March 24th, 2024 [March 24th, 2024]
- Reddit prices IPO at $34 per share in first major social media offering since 2019 - CNBC - March 24th, 2024 [March 24th, 2024]
- What Reddits IPO means for Redditors and what could change - The Washington Post - March 24th, 2024 [March 24th, 2024]
- Reddit shares priced at $34 in largest IPO by social media company in years - The Guardian - March 24th, 2024 [March 24th, 2024]
- How does Trump stand to make $3bn from Truth Social being listed on the market? - The Guardian US - March 24th, 2024 [March 24th, 2024]
- Supreme Court appears favorable to Biden administration in social-media case - MarketWatch - March 24th, 2024 [March 24th, 2024]
- Social media marketing alters the ad landscape with a focus on sustainability - Campaign Middle East - February 20th, 2024 [February 20th, 2024]
- Social Media Marketing In the Digital Age - MarTech Outlook - February 19th, 2024 [February 19th, 2024]
- Valentine's Day takes over in SG: Brands share their unique love stories on social - Marketing Interactive - February 19th, 2024 [February 19th, 2024]
- How brands are planning to navigate the social media & marketing landscape in 2024 - The Drum - January 16th, 2024 [January 16th, 2024]
- Driving Conversions With Hyperlocal Social Media Marketing - NeilPatel.com - January 16th, 2024 [January 16th, 2024]
- 13 Social Media Experts Offer Their Predictions For 2024 - Search Engine Journal - December 30th, 2023 [December 30th, 2023]
- Social T Marketing & PR Expands Team with 2 New Hires - The Valley Ledger - December 17th, 2023 [December 17th, 2023]
- Consumers to abandon social media but accept GenAI search results marketing survey shows - Moonshot News - December 17th, 2023 [December 17th, 2023]
- Dear companies, your social media marketing is tedious and it's cheapening your brand - The Peak Singapore - December 17th, 2023 [December 17th, 2023]
- Labour must straddle the education divide to achieve victory - The Social Market Foundation - December 1st, 2023 [December 1st, 2023]
- Public opinions and social trends, Great Britain: 15 to 26 November ... - Office for National Statistics - December 1st, 2023 [December 1st, 2023]
- Destinations weigh up impact of AI - PhocusWire - November 23rd, 2023 [November 23rd, 2023]
- Sociable: Will chaos at OpenAI benefit social media's AI projects? - Marketing Dive - November 23rd, 2023 [November 23rd, 2023]
- Big Bang Social & Comscore Partner to Revolutionize Creator ... - Adgully - November 23rd, 2023 [November 23rd, 2023]
- USF researchers help reduce lead levels in Madagascar drinking ... - University of South Florida - November 23rd, 2023 [November 23rd, 2023]
- 5 marketing lessons from the Taylor Swift and Travis Kelce romance - Kansas Reflector - November 23rd, 2023 [November 23rd, 2023]
- Apple and Disney Halt Ads on X After Musk Endorses Antisemitic Post - The New York Times - November 23rd, 2023 [November 23rd, 2023]
- News Release Holidays at the Market Returns Sunday with ... - City of Rochester (.gov) - November 23rd, 2023 [November 23rd, 2023]
- SMF responds to Autumn Statement 2023 - The Social Market Foundation - November 23rd, 2023 [November 23rd, 2023]
- Dove partners popular virtual ghost influencer in latest positivity push - Marketing Interactive - November 23rd, 2023 [November 23rd, 2023]
- This social media app is surprisingly the most popular among online ... - Marketing Interactive - November 23rd, 2023 [November 23rd, 2023]