Investors are worried over a potential recession, amid ongoing market volatility and inflation.
A Q2 2026 Quarterly Market Perceptions Study from the Allianz Center for the Future of Retirement found that 62% of investors reported concerns over a looming market recession. Gen Zers and Millennials were likelier to have these anxieties, at 63% and 65%, compared to 62% of Gen Xers and 57% of Baby Boomers.
Only 25% of Americans believe now is a good time to invest in the market, down from 34% in the prior quarter.
“Market volatility makes it more difficult for Americans to feel confident about your financial future,” says Kelly LaVigne, VP of consumer insights, Allianz Life. “During times of volatility like we have experienced recently, Americans may pull back or reduce risk exposure. A financial professional can help create a strategy that includes protection to help reduce the impact of volatility and support long-term retirement goals. These findings highlight a growing need for strategies that help manage risk while maintaining long-term growth potential.”
Among some of these approaches include reducing portfolio risk. Over half (58%) of respondents to the survey plan to incorporate additional protection to their portfolio, and half have made changes to their investments to avoid market risk.
Others (47%) feel comfortable taking on additional risk, yet this number is still down from last quarter (54%).
Overall, respondents say they’re taking market volatility seriously, as 62% said they would stop using their current financial planner if they didn’t help them manage their risk.
Gen Zers were likelier than any other generation to implement more protection to their portfolio, as many feel particularly financially strained and anxious over their careers. The youngest working cohort are worried over how the market could impact jobs, more so than their Millennial and Gen X colleagues.
Their financial anxieties are further extended as 75% say they have not contributed to retirement in the last six months due to the current market environment.
Incorporating strategies and working with a financial professional could ease some of their concerns, said LaVigne. “Younger investors are feeling the strain of today’s economic uncertainty in very real ways from concerns about job security to reduced ability to save,” she noted. “The good news is they have time on their side. Starting early with a strategy that balances growth opportunities with protection can help them navigate volatility now while building a stronger foundation for the future.”