1-866-646-8465
CHARTS
0

Your Cart:

Subtotal: $0.00
Gold bar and coins

Market Insider: May 23, 2023

U.S. Money Reserve Logo - Transparent Gold

U.S. Money Reserve

May 23, 2023

The average American’s sense of financial security has declined over the past two years, according to the results of the May 2023 IPSOS Country Financial Security Index Report. Consumers are now searching for financial protection in the face of economic pessimism.

Public financial sentiment is negative.

Retired couple looking over laptop and financial statements

Retiree confidence has plummeted from 2022 to 2023—at its fastest rate since 2007 to 2008, according to the latest results of the Retirement Confidence Survey from the Employee Benefit Research Institute and Greenwald Research, published in April 2023. Those surveyed express concerns over retirement account balances and inflation.

Fund managers are increasingly pessimistic about financial stability, according to a May 2023 Bank of America survey. Of survey participants, 65% say they expect a weaker economy. Both an incoming recession and a credit crunch are cited as concerns.

Spending and savings habits are changing in response to economic pressures.

Man going over bills and finances

According to reports by Deloitte and Bank of America Institute (released in April and May 2023, respectively) 71% of Americans are setting more money aside for savings and cutting spending. CNBC reported on May 16, 2023, that fear of a recession is the primary reason.

Consumer debt is growing exponentially, reaching trillion-dollar levels. The New York Federal Reserve reports that consumer debt totaled $17.05 trillion in the first quarter of 2023. Credit card debt alone exceeded $1 trillion.

Americans are looking to non-paper assets for wealth protection.

According to a May 17, 2023, article from Business Insider, Americans have pulled $8 billion out of small-cap stocks and placed it in more secure assets as headwinds threaten economic growth.

As for assets Americans find more secure, Gallup survey results released on May 11, 2023, show that Americans view gold as the second-best long-term asset behind real estate. Gold’s perception as the best long-term asset has nearly doubled among Americans, rising from 15% of respondents in 2022 to 26% in 2023. Meanwhile, the percentage of respondents who see real estate as the best long-term asset has fallen from 45% to 34%.

As economic pessimism leads many Americans to seek safer asset options for protecting their wealth, gold’s popularity may continue to increase.

Read U.S. Money Reserve’s “Market Insider” each week for more economic insights. Nothing herein should be considered as portfolio or retirement advice as U.S. Money Reserve (“USMR”) cannot and does not offer financial advice. Clients should consult a financial advisor for specific advice. This commentary is provided by USMR for informational purposes only and is provided on an “as is” basis without any warranty of any kind, whether express or implied. Your use of the information provided in this commentary is entirely at your own risk. In no event will USMR be held liable for any indirect, special, incidental, or consequential damages arising from the use of information contained in this commentary.

 

Subscribe

Sign up now for latest executive insights and latest news delivered right to your inbox.

  • This field is for validation purposes and should be left unchanged.

Related Articles

Market Insider: September 24, 2024

Market Insider: September 24, 2024

The nonpartisan Committee for a Responsible Federal Budget (CRFB) recently found that Social Security beneficiaries are on track to face a 21% cut in benefits when the program’s trust fund is depleted in 2033. “Both major party candidates for the presidency having no...

read more
Market Insider: September 24, 2024

Market Insider: September 17, 2024

Decreasing numbers of job openings and new hires may point to a crumbling labor market. The trend has alarmed some analysts, who say it could lead to significant problems for the U.S. economy.  “The takeaway from the range of labor market data is clear—the job market...

read more
Market Insider: September 10, 2024

Market Insider: September 10, 2024

Top Federal Reserve officials have indicated that the central bank will begin lowering rates at the end of its September 18, 2024, meeting. However, several economists and analysts believe this action will be too late to prevent a recession. “The Federal Reserve is...

read more