Where to Go for News and Information
This recession has left investors reeling, not knowing where to turn for information regarding the economy, investments, or basic news. Times of uncertainty leave many individuals seeking out information, trying to make sense of what is happening. The question is, where should investors turn to for this information? How do investors prefer to conduct their financial research? What news sources are used for information about the economy and stock market? What about specific investments, where is the best information source?
There is clearly a desire among wealthy investors for more information, as 38 percent of investors are looking at their investment portfolio more now, given the market correction we are in the midst of, according to recent research from Spectrem Group. Business Owners are even more likely to be looking at their investments more often, with 47 percent looking at their investments more as a result of the market correction. Wealthy investors in the healthcare field are the least likely to be looking at their investments more.
Given that we know there is a desire for information, where are wealthy investors going for their financial information? It is not surprising that 57 percent of investors prefer to speak with a knowledgeable person when researching financial information. Women are even more likely to prefer to speak with a knowledgeable individual in order to obtain their investment information, with 62 percent feeling that way. Forty-five percent of investors would prefer to read articles to obtain their financial information, while 20 percent would like to watch cable news.
Outside of basic financial information, investors often want more information about the economy and the stock market. For this information just over half of investors use business information websites, while 47 percent use their financial advisor for information about the economy and markets. Younger investors are more likely to use the business information websites, while older investors are more likely to use their financial advisor. Cable news is another source of information for 43 percent of wealthy investors. Family and friends are used by 30 percent of investors for information about the economy and stock market.
These various news sources work well when the information is general in nature and doesn’t require any level of specificity regarding how the information applies to a specific individual. When it comes to specific investment information, investors prefer to use their financial advisor. This is not surprising because only their advisor would be able to properly discuss specific investments as it relates to their specific situation. Thirty-eight percent of investors also look to business information websites, like CNBC, Bloomberg, Fox Business, and CNN to get information about specific investments.
Certain topics need different types of research and information sources. Utilizing a knowledgeable person is always a wise action to take, and that individual can often be a financial professional. They can disseminate the information into what applies to each investor’s specific situation and portfolio. While in many cases more information is better, it is also very easy to become overwhelmed by the quantity of information available, so it is important that the information comes from a source that is trusted.