“Even as retail investor behavior has stabilized somewhat in recent months, financial institutions should be concerned by the omnipresent ire toward banks and the uncertainty as to whether financial-reform legislation will quell that anger or drive an uptick in investing”

The survey also found growing risk tolerance, including heightened investor interest in the so-called emerging BRIIC countries (Brazil, Russia, India, Indonesia, China). Though some 21% of the investors who plan to increase their investing activity said they would up their allocations in U.S. equity and bond markets, fully 17% cited a preference for investing in the BRIIC countries, versus a paltry 8% who plan to up their allocations in Europe.

“Though a majority of U.S. investors continue to sit on the sidelines, those putting their toes in the water are shunning European markets afflicted by sovereign debt concerns. Instead, they’re opting for stability in the U.S., while pursuing growth opportunities offered by emerging markets and high-growth sectors, such as oil and gas, and telecommunications,” said Stefano Aversa, co-president of AlixPartners. On Friday, Aversa will chair a panel, “What If Another Mega-Bank Fails?,” at the World Economic Forum in Davos, Switzerland.

Over the next three years, 48% of Americans and 57% of self-described investors are planning to invest, up from 35% and 52% in May 2010, according to the survey. Over the upcoming three-year period, says the poll, 26% of investors plan to shift their investing allocation towards “high growth,” while just 12% plan a shift toward “blue chip,” suggesting that some pockets of investors are ready to invest more aggressively.

At the same time, however, 42% of Americans say they have not changed their investment behavior since mid-2010, and just 14% say they now are more likely to invest, down five percentage points since May. Moreover, 10% of Americans say they have reduced their investing activity since mid-2010.

Against this backdrop of diverging intentions, a strong consensus has emerged among all Americans, investors or not. Just six months since the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, an overwhelming majority of Americans say banks and other financial institutions that received aid during the financial crisis should be forced to provide more loans, reduce fees and otherwise do more for the U.S. economy and consumers.

As the Dodd-Frank rules are being drafted, no less than 70% of survey respondents say that banks should be required to do more for the economy. Americans are also extremely skeptical of the expected regulatory impact of Dodd-Frank; the AlixPartners poll reveals that only 12% of those surveyed are now more likely to invest as a result of the new financial reforms.

“Even as retail investor behavior has stabilized somewhat in recent months, financial institutions should be concerned by the omnipresent ire toward banks and the uncertainty as to whether financial-reform legislation will quell that anger or drive an uptick in investing,” said Steve Deedy, managing director at AlixPartners and co-lead of the firm’s Enterprise Improvement unit.

“Caution and uncertainty are still very much the order of the day with investors of all stripes, especially everyday Americans,” said Will Harris, a director in AlixPartners’ Financial Services Practice, who led the survey. “Financial institutions are going to have to go the extra mile for consumers to earn back consumers’ trust and kick-start Americans’ investing activity.”

Seeking Professional Investment Advice

The recent poll asked American investors to identify the industries and geographies they look upon most favorably today. While a clear majority (55%) responded “not sure” when asked to pinpoint an industry, among the 10 industries included in the survey, oil and gas (9%), telecommunications and media (9%), consumer goods (6%), real estate (5%) and financial services (4%) rated highest, with aerospace and defense, automotive, building and construction, chemicals, and manufacturing ranking lowest.

The survey also found that if and when they do invest, less than one-quarter (23%) of Americans plan to invest without any professional investment advice. Even among those who consider themselves “financially savvy,” only 29% plan to invest on their own, down from 39% in the May 2010 AlixPartners survey.