When ethnic investors consider financial regrets, they tend to turn to poor savings habits.
Spectrem Group’s Ethnic Segmentation Series report on ethnic investors – Financial Attitudes and Concerns – asked investors from three different ethnic segments about their thoughts regarding the financial crisis of 2008. The responses from each ethnic segment was compared to the investors not included in those ethnic groups.
Among African-American, Asian and Hispanic investors, the overwhelming difference in their responses was in regards to what they wish they had done differently prior to the crash. While only 29 percent of all other investors said “not saving more” was a regret, exactly twice as many African-Americans (58 percent) said they wished they had done so, and 52 percent of Hispanics felt that way. Thirty-four percent of Asian investors said they wished they had put away more in a rainy day fund before the rainy day hit.
Improper saving habits was not the only regret ethnic investors had. Their answers to most questions regarding the financial crisis showed a greater concern than the non-ethnic population of investors.
One-third of Asian investors, for instance, said they wished they had taken more risk in their investments prior to the crash, while only 21 percent of other investors felt so. The African-American investors (24 percent) and Hispanic investors (23 percent) were more in line with the other investors in that concern.
When asked about taking on too much debt prior to the crash, African-Americans expressed a high level of regret over that topic. While only 12 percent of investors not in the ethnic groups said they wished they had not taken on so much debt, 23 percent of African-Americans listed that as a regret.
The ethnic groups have unique viewpoints on the future of their finances as well. Seventy percent of African-American investors say they expect their personal financial situation to improve over the next year, while only 53 percent of other investors feel that way.
Fifty-six percent of Hispanic investors say they pay closer attention to the global economic situation because it has a greater impact on their portfolios than it did in the past. Only 40 percent of African-American investors said they were watching the rest of the world’s economies for that reason.
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