Investors Remain Focused on Long-Term Goals

New Schwab Survey Shows Investor Engagement in the Market Continues Even as Short-Term Pain Unfolds

Monday, October 14, 2013 6:00 am PDT



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"While our clients understand that short-term market swings and political drama may cause discomfort in the short-term, these events are not catalysts for knee-jerk reactions when it comes to their portfolios"

SAN FRANCISCO--(BUSINESS WIRE)--More than three in five investors believe a market correction will occur in the next nine months, but nearly half (49 percent) think now is a good time to invest in equities, and 70 percent say they are engaged in managing their money. The latest findings on client sentiment by Charles Schwab, one of the country’s largest investment services firms with more than $2.08 trillion in client assets*, reflect continued engagement in the stock market and a sense that investors remain focused on the importance of long-term investing.

“While our clients understand that short-term market swings and political drama may cause discomfort in the short-term, these events are not catalysts for knee-jerk reactions when it comes to their portfolios,” said Rodney Prezeau, senior vice president of client experience, Charles Schwab & Co. “Many of our clients prefer to keep one hand on the wheel when it comes to their finances, so we’re having more conversations with clients and that appears to be boosting their confidence levels. In fact, our survey showed that 70 percent feel most confident when they have ongoing or periodic advice from an advisor, rather than flying solo or completely delegating their financial decisions.”

Schwab’s Q3 Investor Sentiment Survey, which polled more than 1,000 retail clients between September 6 and September 18, 2013, showed only 15 percent shifted their investing philosophy from the prior quarter.

“The government shutdown has certainly led to some frustration for clients, but fortunately, most recognize how important it is to not overreact to daily headlines. That’s not to say clients aren’t carefully adjusting their strategies – we’re working with them in a variety of ways to fine-tune their portfolios and keep them on track,” Prezeau said.

According to the survey, clients took the following actions with their portfolios during the past three months:

  • 26 percent rebalanced their portfolios, two percent less than in Q2
  • 17 percent moved money into cash, a one percent drop from Q2
  • Nine percent moved money into fixed income, the same number as the prior quarter
  • Seven percent moved to the sidelines, compared with nine percent in Q2
  • Four percent moved into gold and other commodities, two percent more than in Q2

In addition, 40 percent of clients indicated that their investing strategies are not influenced by factors such as stock market performance, the interest rate environment and other short-term economic metrics, reinforcing the notion that investors are increasingly focused on positioning themselves to reach long-term financial goals over short-term gains.

According to Prezeau, Schwab’s advice and planning capabilities have evolved and grown to help clients meet their long term financial goals. Schwab’s suite of advisory programs, with $145 billion in total assets under management**, provides clients with ongoing investment guidance and portfolio solutions. Year-to-date, Schwab has delivered financial plans to nearly 75,000 clients, and the firm’s 1,200 financial consultants in more than 300 branches across the U.S. work one-on-one with clients every day.

About the Survey

The Charles Schwab Q3 Investor Sentiment Survey is an online survey of 1,053 Charles Schwab retail clients conducted from September 6 – September 18, 2013.

About Charles Schwab

At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.

More information is available at Follow us on Twitter, Facebook, YouTube, LinkedIn and our Schwab Talk blog.

*As of 8/31/2013
**As of 9/30/2013


Through its operating subsidiaries, The Charles Schwab Corporation (NYSE: SCHW) provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC,, and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at and

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Fee-based Financial Planning consultations are conducted by employees of Schwab Private Client Investment Advisory, Inc.

Schwab Private Client, Windhaven Investment Management, Inc. and ThomasPartners, Inc. are registered investment advisers and affiliates of Charles Schwab & Co., Inc. "Schwab".

Portfolio management for Schwab Managed Portfolios is provided by Charles Schwab Investment Advisory, Inc. ("CSIA"), an affiliate of Charles Schwab and Co., Inc. ("Schwab").

Investing involves risk, including possible loss of principal.



Charles Schwab
Michael Cianfrocca, 415-667-0344
Kate Clark, 212-704-4491

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