American Investors Become More Risk Averse Amid Financial Fears
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: PRnewswire
- Risk Aversion Trend: According to F&G's annual survey, 77% of American investors are pulling back on risk investments due to concerns over healthcare, inflation, and AI, indicating heightened economic anxiety.
- Declining Financial Confidence: The survey reveals that increased economic burdens are eroding investors' confidence in their financial situations, which is impacting their retirement planning and investment decisions.
- Rising Demand for Insurance Solutions: As risk aversion rises, F&G, as a provider of insurance solutions, may experience increased demand for annuity and life insurance products, potentially driving business growth.
- Market Impact Analysis: The trend of risk aversion among investors could lead to decreased market liquidity, affecting stock market performance, especially amid growing economic uncertainties.
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Analyst Views on FG
Wall Street analysts forecast FG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FG is 32.00 USD with a low forecast of 31.00 USD and a high forecast of 33.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 28.520
Low
31.00
Averages
32.00
High
33.00
Current: 28.520
Low
31.00
Averages
32.00
High
33.00
About FG
F&G Annuities & Life, Inc. is a provider of insurance solutions serving retail annuity and life customers, as well as institutional clients. Through its subsidiaries, it markets a portfolio of annuities, including fixed indexed annuities (FIAs), registered index-linked annuities (RILAs), (referred to as indexed annuities), multi-year guarantee annuities (MYGAs) as well as pension risk transfer (PRT) solutions, indexed universal life (IUL) insurance and institutional funding agreements. Its retail annuities serve as a retirement and savings tool on which its customers rely for principal protection and predictable income streams. In addition, its life insurance products provide its customers with a complementary product that allows them to build on their savings and provide a payment to their designated beneficiaries upon the policyholder's death. Its customers value its FIAs, which provide a portion of the gains of an underlying market index, while also providing principal protection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
American Investors Become More Risk Averse Amid Financial Fears
- Risk Aversion Trend: According to F&G's annual survey, 77% of American investors are pulling back on risk investments due to concerns over healthcare, inflation, and AI, indicating heightened economic anxiety.
- Declining Financial Confidence: The survey reveals that increased economic burdens are eroding investors' confidence in their financial situations, which is impacting their retirement planning and investment decisions.
- Rising Demand for Insurance Solutions: As risk aversion rises, F&G, as a provider of insurance solutions, may experience increased demand for annuity and life insurance products, potentially driving business growth.
- Market Impact Analysis: The trend of risk aversion among investors could lead to decreased market liquidity, affecting stock market performance, especially amid growing economic uncertainties.
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American Investors Become Increasingly Risk Averse Amid Financial Fears
- Rising Risk Aversion: According to F&G's sixth annual Risk Tolerance Tracker, 77% of Americans report becoming more cautious over the past year, a 4 percentage point increase from last year, indicating the ongoing erosion of household financial confidence due to economic pressures.
- Increased Anxiety Among Middle-Aged: Among Americans in their 40s, 81% report becoming more risk averse, highlighting the mounting financial anxiety at a critical stage defined by housing costs and family obligations, which complicates retirement planning.
- Healthcare Cost Concerns Surge: The survey reveals that worries about healthcare and long-term care costs have risen from sixth to second place, now at 31%, indicating that alongside inflation, Americans are increasingly anxious about future medical expenses.
- Lack of Professional Guidance: Despite heightened financial stress, 54% of respondents indicate they do not work with a financial professional, suggesting that many are navigating these challenges without adequate support amid economic uncertainty.
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