U.S. Investors Overweight in Stocks Despite Market Fears - StudyU.S. Investors Overweight in Stocks Despite Market Fears - Study

By Jennifer Ablan

NEW YORK, Dec 5 (Reuters) - Three out of four U.S. investorsage 40 and older worry about a correction that will eventuallyend the long-running bull market in stocks, yet most refuse tohead for the exits.

Sixty-nine percent of older investors remain heavily exposedto equities, according to a national study released on Tuesdayby Global Atlantic Financial Group, potentially leaving manyill-positioned for the inevitable downturn.

"Investors felt the pain from the 2008 financial crisis, butour study indicates many are not prepared for anothersignificant downturn," said Paula Nelson, president, Retirement,at Global Atlantic.

"It's clear that investors need a better strategy to protectthemselves from future market corrections and volatility,especially as they enter their peak earning years and preparefor and enter retirement," she added.

The study was conducted in October and November by Ebiquity,a global market analytics firm. It polled 1,005 people whoinvest in equities through individual stocks, exchange-tradedfunds, mutual funds, 401(k)s and individual retirement accounts.

Fifty-nine percent of employed investors said a significantstock market drop would delay their planned retirement date,while 25 percent of retirees said it would disrupt theirretirement.

Nonetheless, 52 percent said they believed the stock marketcould sustain continued growth for five years without a downturnof 10 percent or more.

According to the Global Atlantic study, the most popularinvesting strategy is steady income-focused investments (34percent), followed by protecting/capital preservationinvestments (26 percent) and growth (24 percent).

Women appeared to be more conservative than men. Forty-threepercent of women said they placed a higher value on income,compared with 34 percent of men, while 30 percent of womenhighly valued capital preservation, versus 23 percent of men.

More than one-third of retirees, 36 percent, also placed ahigher value on capital preservation, compared with just 19percent of employed people.

Forty-six percent of investors said they found equities andfixed income investments equally appealing, while 32 percentpreferred equities and 22 percent preferred fixed income. Morewomen than men preferred a mix, 52 percent to 38 percent.

The typical U.S. investor 40 and over on average invests$210,051 in the stock market, while retirees on average invest$236,148, the study said.(Reporting by Jennifer Ablan; Editing by Dan Grebler)