Investors Back on Track Following Lows of Great Recession

Recession Scars are Fading

January 15, 2014- -OMAHA, Neb.–(BUSINESS WIRE)–The immediate financial impact of the Great Recession is slowly becoming a thing of the past as investors get back on track with their long-term financial goals, according to the annual Financial Review & Outlook Survey released by TD Ameritrade Holding Corporation (NYSE:AMTD). A majority (67%) of investors surveyed said that 2013 was a good or excellent year for them financially.

Back on Track

Investors’ confidence in the markets has also improved. Consider the amount of money invested in the market since the recession. Nearly 80 percent of investors surveyed in 2013 said they are putting the same amount of or more new money into the markets, versus 67 percent of investors who said so in a 2010 survey1. Additionally, the number of investors who reported investing less in the markets since the recession has dropped, from 32 percent to 21 percent, over the same period.

Investors also appear to be recouping losses realized in the recession. In 2013, more investors who are saving for retirement said they are ahead of schedule or on track with their retirement savings goals than those who said so in 2010 (67% vs. 53%, respectively).

“While many Americans took a more cautious financial stance over the past few years, we continue to see signs that the recession’s scars are fading,” said J.J. Kinahan, chief strategist, TD Ameritrade, Inc. (“TD Ameritrade”), a broker dealer subsidiary of TD Ameritrade Holdings Corporation. “It appears investors are feeling the euphoria of a more positive year, and are beginning to engage in the market more. It’s encouraging to see the optimism both in the results of this survey and among our clients.”

This renewed sense of investor optimism extends beyond financial planning as well. Investors in 2013 were less likely to have put off making major financial or life decisions, with half saying they had done so, compared to 56 percent of investors surveyed in 2010. The top three items that investors put off as a result of the recession were: travel (26% in 2013 vs. 35% in 2010); purchasing a car (18% in 2013 vs. 25% in 2010); and purchasing a home (4% in 2013 vs. 13% in 2010).

It appears investors are feeling the euphoria of a more positive year, and are beginning to engage in the market more

TD Ameritrade’s Investor Movement Index® (“IMX”) supports the positive sentiments revealed in the survey. The IMXSM climbed to the highest reading in its four-year history in December and continues to show that investors who are engaged in the markets were positioning their portfolios in a bullish manner.

Recession’s Silver Lining

While the recession caused many setbacks, there were a few silver linings. For one, 41 percent of couples in 2013 said they are talking to their spouse/significant other more frequently about money and finances today than they did prior to the recession. This proportion rises to more than half (55%) among those investors who say they had a tough or very tough year, financially speaking, in 2013.

Looking Ahead

With 2013 behind them, a majority of investors surveyed in 2013 expect that 2014 will be the same or even better for both the economy (77%) and for their own personal finances (84%).


For more information on TD Ameritrade’s Financial Review & Outlook Survey, including key findings, visit here.

1Source: Lessons Learned in the Aftermath of the 2008-09 Economic Recession Survey

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