Readers Speak: Hanging Tough With Stocks

The plunging stock market, a lackluster report on personal spending and Toyota s escalating problems dominated business headlines this week, and SmartMoney.com readers voiced their opinions on each in our daily polls.

Here s where you stand: you haven t reduced your exposure to stocks; you haven t changed your own spending habits; and you re split over whether you ll ever buy a Toyota.

The polls were conducted during a five-day stretch when the Dow Jones Industrial Average fell below the 10,000 threshold, as concerns over high unemployment, the middling real estate market and weak consumer spending left traders uncertain over the pace of the recovery.

Earlier this week, when the Dow was still above 10,000, SmartMoney.com asked readers if they had reduced their exposure to stocks in the past two months. Fifty-eight percent of respondents said they had not, 31% said they had, and 11% said they had increased their exposure to equities. Right now, broadly speaking, those who reduced their exposure are faring better. On Feb. 4, the Dow closed at its lowest point 10,002 since Nov. 4.

On the consumer front, the Commerce Department said Monday that personal consumption expenditures, or PCE, had climbed in December at their slowest pace in three months. Real PCE rose by a seasonally adjusted 0.1% in December, compared to a 0.4% increase in November. SmartMoney.com readers weighed in on their own spending during the past three months; forty-three percent of respondents say their spending has remained about the same, while 38% say they re spending less. Only 19% say they re spending more.

More bad news rocked Toyota this week. The company said it is now looking into potential brake problems in the 2010 Prius and the Lexus HS250h. This development follows a Jan. 21 announcement by Toyota recalling 2.3 million cars, including certain RAV4s, Corollas and Camrys because of problems with their gas pedals. When asked whether the recalls have affected their view of Toyota cars, 48% of respondents said their view remains unchanged; 47% said they re less likely to buy a Toyota; and 6% said they re more likely to buy. Wall Street appears less forgiving: In the last two weeks, Toyota s stock has dropped about 20%.