Economic Outlook

Americans Less Fearful About A Recession And Investing

Yet new study finds many want more interaction with their financial professional

A new report from Allianz Life reveals 55% of Americans worry a major recession is right around the corner, down from 64% at this time last year.

MINNEAPOLIS – June 25, 2024 – With the market making steady gains across the first half of the year, Americans are feeling more comfortable with the economy and less nervous about investing, according to the 2024 Q2 Quarterly Market Perceptions Study* from Allianz Life Insurance Company of North America (Allianz Life).

Compared to this time last year, fewer Americans are worried about an imminent recession. The percentage who worry that a major recession Is right around the corner is down from 64% in Q2 2023 to 55% in Q2 2024. More Gen Xers (62%) than boomers (51%) or millennials (55%) worry about a recession right around the corner.

At the same time, fewer Americans feel pessimistic about the market. The number who say they are too nervous to invest in the market right now has fallen from 46% in Q2 2023 to 37% in Q2 2024. Black/African American (43%) and Asian/Asian American respondents (44%) are more likely to be too nervous to invest than white (36%) and Hispanic (38%) respondents.

Also, fewer Americans are leaving cash on the sidelines. The number who would rather have their money sit in cash than endure market swings has dropped from 62% in Q2 2023 to 56% in Q2 2024. Millennials (61%) and Gen Xers (57%) are more likely than boomers (48%) to prefer having their money in cash.

“While it’s encouraging that many people are feeling more comfortable with the market, it’s important to remember that setting yourself up for future financial stability is done over the long run,” said Kelly LaVigne, VP of Consumer Insights, Allianz Life. “Don’t get distracted by the whims of the market. You want to have a financial strategy that accounts for risks like market volatility but does not get sidetracked by short-term unpredictability.”

Americans Seeking More Interaction With Financial Professionals

As Americans feel more comfortable with the markets, they are looking to meet with their financial professional. More than half (54%) of Americans who have a financial professional say they would prefer to meet with them more frequently than they currently do. In particular, millennials would like to meet to discuss their finances. Nearly three in four (71%) of millennials say they would prefer to meet with their financial professional more often, compared to 65% of Gen Xers and 37% of boomers.

The vast majority (85%) say they have been in contact with their financial professional in the last year.

 

 

 

*Allianz Life conducted an online survey, the 2024 Q2 Quarterly Market Perceptions Study in May 2024 with a nationally representative sample of 1,005 Respondents age 18+. The study included an oversample of respondents who identified as Black/African American (277 responses); Hispanic (265 responses); Asian/Asian American (265 responses).

 

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