Schwab Q2 Retail Client Sentiment Survey: More Than Half of Investors Are Now Bearish but Majority Plan To Stay Invested and Remain Confident About Long-Term Goals
“Investors’ concerns about the market are understandably on the rise this quarter amid inflation, the ongoing conflict in
Key Q2 2022 Retail Client Sentiment Report Themes
- Young investors, defined as investors under the age of 40, remain the most confident in the market by a small margin, with 31% feeling bullish in Q2; however, young investors’ bullish sentiment has dropped more than 10% since Q1 2022.
- In Q2, Schwab clients are most bullish about the energy sector (53%), followed by healthcare (46%) and utilities (42%). They are most bearish about real estate (46%) and consumer discretionary (44%).
- Despite increased bearish sentiment, 42% of Schwab’s retail clients plan to add money to their investment portfolios in Q2. Individual stocks (34%), ETFs (27%), and mutual funds (17%) continue to be the most popular investment vehicles.
- Concerns about inflation (18%), geopolitical or global macroeconomic issues (16%), and the potential of a recession (13%) are top of mind for investors in Q2 2022. Despite these concerns and the increase in bearish sentiment, the majority of Schwab’s retail clients (91%) are confident that they will reach their financial goals.
More than half of investors (63%) have noticed a negative impact on their portfolio as a result of the conflict in
Ukraine. Further, approximately 80% of investors report that the conflict in Ukrainehas had an impact on their sentiment, but the majority (63%) do not plan to alter their portfolio allocation as a direct result.
About the survey
This data is collected by Schwab quarterly via an online survey of clients with retail assets of at least
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