Investor sentiment declined in the first quarter of 2016, for the third consecutive quarter, and reached its lowest point since the third quarter of 2013.
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This is according to the John Hancock Investor Sentiment Survey. The John Hancock Investor Sentiment Index score for the first quarter of the year is +19, a three point drop from the fourth quarter of 2015.
The John Hancock Investor Sentiment Index reflects the percentage of investors who say they believe it is a "good" or "very good" time to invest, minus those who feel the opposite.
Positive attitudes toward investing in equities, through stock and balanced mutual funds, declined significantly. More investors said they are inclined to hold on to cash compared with previous quarters, rather than putting it to work in the market.
Overall, 75 percent of investors remain optimistic about the growth of the U.S. economy in the near future, but half (49 percent) believe that 2016 will not be a positive year for the average investor.
Blue chip stocks led among market segments in terms of performing well over the next six months, with 17 percent of investors choosing them, though investors have less conviction compared with the first quarter of 2015 when 24 percent chose them.
The cost of healthcare continues to lead among investors' worries, with 56 percent expressing great concern about this issue. A majority (51 percent) also are very concerned about political gridlock in Washington.
Regarding personal financial priorities, among those surveyed who are working, 33 percent said saving for retirement is their main goal.
Among retirees, maintaining their current lifestyle ranks as their chief priority (65 percent). Overall, 14 percent say that paying down debt remains a top financial priority.
More investors (18 percent) claim to be in a worse position, financially, than they were two years ago. This is up significantly from the first quarter of 2015, when 12 percent said they were in a worse financial position. ■
A strong storm that originated over the Pacific has tracked through the Great Basin and is currently transitioning across the Rockies to redevelop across the central High Plains later today into early Saturday morning.