U.S. Investor Optimism Plunges

[WestVirginiaRebel]

Gallup:

PRINCETON, NJ -- U.S. investor optimism declined in September, as the Wells Fargo/Gallup Investor and Retirement Optimism Index plunged to -45 from +33 in May after +42 in February. The index is now back at the financial crisis levels of late 2008.

The Wells Fargo/Gallup Investor and Retirement Optimism Index is a broad measure of investor perceptions that tends to be a precursor of future economic activity and is consistent with a future decline in the overall U.S. economy. It reached its record low of -64 in February 2009 -- just before the equity markets reached bottom in March 2009. The Index peaked at +178 in January 2000, just before the dot-com bubble burst.

Investors Feel "Loss of Control"
Two in three investors (65%) say they feel little or no control in their efforts to build and maintain their retirement savings in the current environment while 22% say they have quite a lot of control and only 12% say they have a great deal of control. Forty-four percent say their control has decreased over the past six months.

Unemployment and a weak economy are most commonly cited as being a major factor in causing them to feel a loss of control over their investments, followed by extreme volatility on Wall Street. About three-quarters point to political factors including the "confrontational political stalemate in the nation's capital" and "a lack of national leadership." Fewer say Federal Reserve policies and the financial crisis in Europe made them feel a loss of control.

Jobs Hurting the Investment Climate

The poll also asked investors to evaluate factors hurting the investing climate, with the unemployment rate, the job growth rate, the federal budget deficit, and the politically divided federal government most often seen as hurting the investment climate "a lot."

Best Places to Put Your Money Include Gold and "Under the Mattress"

The plunge in optimism seems to have had an impact on investor perceptions. When asked what they think the best place is to keep their money right now, 26% of investors say stocks/mutual funds and 21% say savings accounts/CDs. However, another 20% point to gold and precious metals while 14% suggest the best place is to put your money "under the mattress" or hold it in cash. Another 8% point to real estate, while 7% indicate bonds.
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Hoard it while you can?

[Casino67]

The only thing that has gone 'up' is unemployment. DNC trying to create something to run on next year. Good luck guys. Maybe they can run against Reid not allowing the 'Jobs' bill to be voted on.