Investment in property continues to shine amidst declining stocks and rising gold prices
In a time of economic uncertainty, Americans are reshuffling their investment priorities. According to a recent Gallup survey conducted from April 1-14, the top long-term investment for the 12th consecutive year remains real estate.
The survey found that 37% of U.S. adults now view real estate as the best long-term investment, a percentage that has remained consistent over recent years. This trend is reflected across income groups, with real estate being the top pick for all. However, higher-income Americans are more likely to favor stocks, while lower-income adults tend to prefer safer, tangible investments like gold or savings accounts.
The resurgence of real estate as the preferred investment comes after sharp declines in stock values and a sell-off of U.S. government bonds earlier this spring. Despite this, confidence in stocks as the best investment has weakened, with only 16% of respondents choosing them, a drop of six points and a reversal of the gains made in 2024.
However, stock and retirement investors continue to skew wealthier, older, married, and college-educated. Despite the declining confidence, 62% of U.S. adults currently own stocks through direct purchases, mutual funds, or retirement plans like 401(k)s and IRAs.
Americans are increasingly concerned about getting poor returns on their investments, with 53% reporting worry and 26% being "very worried". This concern is more prevalent among those with stock investments, with 62% expressing concern compared to those without (38%).
Gold has gained ground, with 23% of respondents choosing it as the best long-term investment, up five points from last year. While gold's popularity has increased, it remains below its record high of 34% set in 2011 during the post-recession years.
Other investment preferences remained stable, with 13% favoring savings accounts or CDs, 5% choosing bonds, and 4% opting for cryptocurrency.
Economists have warned of a potential recession, and investor sentiment is clearly adjusting. The shift in investment preferences reflects this adjustment, with Americans turning to more tangible and less volatile investments like real estate and gold.
Despite the economic uncertainties, 59% of Americans have money in some form of retirement savings plan, indicating a continued focus on long-term financial security. Real estate remains the most trusted long-term investment for Americans, a testament to its enduring appeal and perceived stability.
In the face of economic uncertainty, Americans are demonstrating a cautious yet resilient approach to their investments, favouring tangible assets and long-term growth opportunities over short-term volatility.
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