New poll finds investor optimism plummeting

High gas prices, failure of the government to control the federal deficit, and persistently high unemployment have soured the attitude of workers toward investing, a poll released today says. The poll, conducted by Gallup for Wells Fargo & Co., shows investor optimism slid from February to May. The investor optimism index measured by the poll fell to 33 in May from 42 in February. The index hit its all-time low of negative 64 in February 2009 as the stock market was hitting its bottom. Prior to the economic downturn, in May 2007, the index was soaring at 95. The top three factors hurting the investing climate are the price of energy, cited by 79% of respondents; the federal budget deficit, cited by 75%; and the unemployment rate, cited by 67%. The May poll shows optimism among workers fell 31% from 35 in February to 24 in May, while U.S. retirees maintained a consistent optimism level of 61 in both the February and May polls.