Investors' Confidence Cratered in Q3: J.D. Power

In the third quarter, investor confidence plummeted 37 points to 596 (on a 1,000-point scale), according to the J.D. Power U.S. Investor Confidence Index. The decline in confidence came against a backdrop of the S&P 500 index decline of 23% through the end of September, inflation up 8.2% during this period and a possible recession.

Even so, 89% of investors with at least $100,000 in investable assets told pollsters in September that they plan to maintain or increase investment accounts over the next quarter. Seventy-one percent said they feel better than a year ago, or the same, about where they are financially.

The polling sample included 1,929 U.S. adult consumers.

The survey found that growing concern about the ability to keep up with inflation is the overriding factor contributing to the decline in investor confidence. Only 27% of respondents said they were highly confident they could do so, down from 35% in the second-quarter survey.