High Tech, High Touch, or Both?

The Gallup Organization released a poll revealing that only slightly more than half of Americans say they currently have money in the stock market, even including 401(k) and IRA holdings. What’s striking about the poll, is that it’s back to the lowest rate in the survey’s 19 year history. Recently our best indicators turned positive for the quarter indicating that those on the sidelines are likely missing out on a current positive trend. At Eagle West Group our clients are currently benefitting from the advantages of tactical models. 

In 2007, nearly 2/3’s of Americans reported investing in the stock market, but that percentage has shrunk steadily since that high-water mark, representing many millions of Americans who have left the stock market. According to Gallup, all American income segments are less likely to have stock investments now than before the Great Recession, but stock ownership for middle class Americans (with annual household incomes ranging from $30,000-$74,999) has plunged the most. The -22% drop for the middle class is more than double the amount among higher and lower income groups. Among age groups, millennials (18 to 34) showed the greatest decline in market participation, dropping from 52% all the way to 38%.

Based on this poll it seems that “robo-advisors” are targeting a surprisingly disinterested market segment. Time and time again it has been proven that the human touch can make a substantial difference in investment and financial outcomes. At Eagle West Group we encourage, our clients, especially the millennial generation, to combine “hi tech” with “high touch” and see what difference that can make.

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