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Why More Investors Are Thinking About Risk
Plus, the latest in market news.
Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.
Today we're discussing risk aversion with investing. Many Americans are adjusting their financial habits as uncertainty continues to shape the economic outlook. A new survey suggests shifts in confidence, behavior, and where investors turn for financial guidance.
Plus, a look back at the last week of market activity.
Table of Contents
INDUSTRY CHATTER
Recent shifts in the economy are leading many investors to reassess their financial routines. Whether it’s changes in prices, policy, or market behavior, there’s a growing sense that staying on autopilot may not be enough.
A new survey from Equitable asked 1,000 U.S. adults how they’re feeling about their finances. Less than half (42%) said they feel prepared to manage changing financial conditions. About two-thirds expressed concern that today’s economic environment could interfere with achieving long-term financial goals.
What investors are doing differently
In response, 50% of respondents said they plan to cut back on discretionary spending. A similar number plan to increase savings or reassess their investment mix. Among those working with a financial advisor, 54% said they’re planning to adjust their portfolios compared to 36% of those without one.
The presence of professional advice seems to affect confidence and behavior. Nearly 60% of those with a financial advisor said they feel prepared for current conditions, versus only 30% of those who don’t have one. And when it comes to financial guidance, 80% of respondents with an advisor turn to them first. Those without advisors most often consult family and friends (57%), followed by financial media (32%) and social platforms (25%).
The survey also showed a preference for financial products that offer some level of protection. Among respondents invested in the stock market, nearly two-thirds said they would be willing to trade some upside potential for downside protection.
Even with a mix of concerns, from tariffs and inflation to broader market swings, the responses suggest that many are staying active in managing their finances. They’re looking for clarity, taking action where they can, and rebalancing plans to align with a financial landscape that continues to evolve.
WEEKLY MARKET RECAP
Wall Street extended its historic rally this week, with major benchmarks such as the S&P 500 and the tech-heavy Nasdaq 100 hitting fresh all-time highs, as strong corporate earnings, robust economic data and AI-fueled tech momentum continued to boost investor optimism.
Big banks beat earnings estimates, setting a strong tone for the season. Airlines and consumer-focused giants also impressed.
Johnson & Johnson and PepsiCo Inc. reported their best trading weeks of the year, further supporting the confidence that solid consumer demand is driving margins across sectors.
Economic strength was underscored by June's retail sales data, which showed a 0.6% monthly increase — crushing economists’ forecast of 0.1% — while jobless claims dropped to 221,000, their lowest level since April.
Investors appear to be buying into a “Goldilocks” scenario, where growth is strong enough to support profits but not so strong as to trigger new inflation fears. June's inflation data came in broadly lower than expected, marking a sharp turnaround from the stagflation concerns that gripped the market in the first quarter.
Since the post-tariff lows in April, the S&P 500 has surged 27%, a rally that now ranks among the sharpest three-month advances ever.
NVIDIA Corp. remains the epicenter of the tech rally. Its shares have nearly doubled since April, driven by surging demand for AI chips from cloud giants like Microsoft Corp. and Amazon.com Inc.
Nvidia's rally has helped lift the "Magnificent Seven" — including Microsoft Corp., Apple Inc., Amazon.com Inc., Alphabet Inc., Meta Platforms Inc. and Tesla Inc. — to a combined $18.5 trillion market cap, surpassing China's entire nominal GDP.
Despite the economic strength, President Donald Trump has renewed his attacks on Fed Chair Jerome Powell, calling for immediate rate cuts. He even reportedly floated the idea of firing Powell before backing off the proposal.
Meanwhile, Fed Gov. Christopher Waller — a potential candidate to replace Powell next year — said he's willing to cut rates by the end of July. The Fed meeting on July 30 now carries heightened political stakes, with growing signs of internal divisions.
THE WEEK AHEAD
Economic Data
Monday: US leading economic indicators, CAN RMPI
Tuesday: US Fed Chair Powell speaks
Wednesday: US existing home sales and crude oil inventories
Thursday: US initial jobless claims and new home sales
Friday: US durable-goods orders
Earnings
Click here for the full calendar of economic data and earnings reports.
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