A recent survey finds that middle-class U.S. investors have left the stock market in the wake of the September 11 attacks and the Wall Street accounting scandals.

The survey of nearly 1,000 Farmers Financial agents throughout the U.S. found that 85% had clients leave the market in favour of more conservative investments. It also reveals that approximately 62% of respondents believe that government efforts to protect investors and prevent accounting malpractice have had no effect. And, approximately 19% of respondents to the survey believe that regulatory and U.S. Congressional efforts to protect investors and implement more stringent business accounting and legal reforms have actually diminished customer confidence.

“This data confirms what we’ve believed all along, but adds a chilling, real-world perspective to how defensive investors have truly become,” said Farmers Financial Solutions president Brian Cohen in a news release.

According to the survey, the most popular investment alternatives to the stock market are bank accounts, followed by fixed income investments.

The survey also revealed: 67% of agents saw a number of their customers pull all of their money out of stock market investments as a result of the September 11 attacks and the subsequent accounting scandals; 61% said customers were beginning to invest in the stock market again after the attacks; and, 71% said the accounting scandals prompted investors to return to more conservative investment strategies.

“Investors are still reeling from the one-two punch they took over the last year,” said Cohen.

“Our registered agents are telling us that their customers feel caught in a Catch-22,” added Cohen. “Their recent experience in the stock market tells them they desperately need advice, but their mistrust of Wall Street has left them feeling they have nowhere to turn.”