How investors have stuck with stocks


Despite the GFC and the continued poor performance of the ASX, investors seem to have largely stuck with stocks.

How have investors changed since 2008?

Probably not very much. Despite the Dow Jones Industrial Average being essentially flat over the last decade, U.S. investors are still broadly invested in the stock market, and did not panic as markets plunged in 2008 and 2009. Data from brokerage houses like E*TRADE and TD AMERITRADE shows American investors still have a strong taste for investing.

We suspect the same is true here in Australia. Although the S&P/ASX 200 Index slumped 14.5 per cent in 2011, with stocks like BHP Billiton (ASX: BHP), Rio Tinto (ASX: RIO), Fortescue Metals Group (ASX: FMG), QBE Insurance Group (ASX: QBE) and Insurance Australia Group (ASX: IAG) falling ever further, money continued to pour into superannuation, courtesy of the super guarantee.

Earlier this month, Morgan Housel sat down with Gus Sauter, chief investment officer of the Vanguard Group, which is one of the largest investment companies in the world. Morgan asked him how the past few years have changed Vanguard investors’ attitudes and perceptions of the market. Here’s what he had to say:

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This article was originally published on Fool.com. It has been updated.

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