More Investors See Breaking Even as an Investment Success

investor After years of expecting double-digit returns from their portfolios, intense market volatility has bought investor expectations crashing down to earth. Following two years of dizzying ups and downs, many are now grateful if their portfolios stay in positive territory or simply break even.

In a new report from Fidelity Investments, 55% of respondents surveyed state that they now accept any positive gains at all as an investing success, while another 23% believe that break-even investment returns can be considered a success in the current challenging market environment. The mind-numbing market swings that have ravaged portfolios since the market slide that began in the fall of 2008 now have investors re-evaluating their risk-tolerance levels and reconsidering their confidence in the stock market.

According to the survey, 40% of respondents said that they were seeking lower risk in their portfolio today as compared to two years ago, while roughly 20% said they have either pulled out of the market or stopped monitoring their investments altogether. This is hardly surprising, given that 41% of the trading days in the past two years have experienced at least a 100-point rise or fall in the closing price of the Dow Jones Industrial Average.

While such volatility is enough to scare any investor, the survey also showed that many have begun adjusting to market uncertainty. Four out of 10 investors (43%) reported feeling confident in their investment decisions, and 22% said that they've adjusted to the new market conditions and are becoming more engaged in managing or monitoring their investments.

With 100-point market swings likely to continue, it's a good bet that investor returns in the future will be more closely tied to their ability to manage and monitor their portfolios.

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homegb

I's just like to know, with so many unemployed, and so many bail-outs for car companies, big banks and stock traders, why does the u.S government have to make such a massive greedy profit on federal student loans? They charge people interest on interest, then capitalize that interest to call it "principal" and add more interest on interest...and then they wonder why so many people are defaulting on their student loans?! That's easy! Because Uncle Sam is suddenly in the loan sharking business and we're the ones left hoolding the bag. Funny, we're also the very same people who paid for those bail-outs!! You'd think, with all the big players getting bail-outs and amnesties, the government would back off the little guys like us. Guess fairness and decency has gone out of style these days?

October 09 2010 at 9:06 PM Report abuse rate up rate down Reply
1 reply to homegb's comment
SPQR

There are 10 million people on disability and maybe 10% can't actually work. A large percentage of those on disability actually are quite wealthy. It is the poor, who can't afford a lawyer or do not know the process, and are not able to get disability. Send Obama to the rich people and take back our money now before it is too late and pay our bills....take away the government's credit cards too :) The peasants will be at the whitehouse with their wooden (Chinese) pitchforks and torches soon. Yes buy gold and watch the bottom fall out...good luck! I need a massage. Do something erotic tonight!

October 09 2010 at 5:38 PM Report abuse rate up rate down Reply
londonmum9

yep gold is one thing as it is actually a currency but problem is that industrial commodity prices are now being allowed to run up in price which will eventually hurt any consumer and everyone is sitting on their hands

October 09 2010 at 12:36 PM Report abuse rate up rate down Reply
Robert & Lisa

I have felt that way for a long time. In this environment it definately pays to buy precious metals and just sit on them. It sure beats losing the value of your hard work from inflation and a system of entitlements.

October 09 2010 at 6:52 AM Report abuse +1 rate up rate down Reply