New investors continue to enter the bull market in droves, but they aren't born experts. Many are craving extra guidance about how to invest in what they perceive as increasingly complex and volatile
markets. Americans are generally excited about the new opportunities presented by e-commerce, but also are confused by the magnitude and speed of changes in the market, according to Dianne Michael, a
senior VP with Scudder Kemper Investments. People who already feel uncomfortable about their investment know-how are feeling increasingly alienated as the market evolves, she says.
The latest Scudder Kemper study reports that 82% of Americans say they've never heard of or read about the "new economy," and 61% say they are confused by talk about dotcom companies. 53% of survey
respondents feel that investing in Internet and tech stocks requires greater expertise than making other types of investments. Just over half the respondents in the Scudder study (52%) say they have too
little information about making sound savings and investment decisions.
The Scudder findings are consistent with a recent Money/Vanguard study (PRN, July 17), which found that while the number of mutual fund investors has jumped by 18.4 million since 1995,
their collective "investment literacy" rating has dropped 11.5% in the same time frame.
(Scudder Kemper, Laura Trumble, 617/295-3234 or Amy Schwabero, 312/537-1905; Vanguard, Brian Mattes, 610/669-6219 or John Woerth, 610/669-6224)