Investor Sentiment is a Mixed Bag amidst Flurry of Macroeconomic Signals
May 01 2015 - 8:05AM
Business Wire
While divided over market direction,
experienced investors have a more unified view on where to find
opportunities this quarter
E*TRADE Financial Corporation (NASDAQ:ETFC) today announced
results from the most recent wave of StreetWise, E*TRADE’s
quarterly tracking study of experienced investors. While there is
little consensus on their view of the market, there is a more
unified opinion on where opportunities may lie:
- Investors are divided on market
direction and sentiment. While 37 percent think the market will
stay where it is for the next three months (up 6 percentage points
from last quarter), 34 percent predict a correction, and 29 percent
believe the market will continue to rise. Furthermore, when it
comes to what movie title best describes how they feel about the
market, there is an even tie for first between “Easy Rider” and
“Dazed and Confused.” The gap between bearish and bullish sentiment
also narrowed this quarter by 7 percentage points, to 41 percent
bearish and 59 percent bullish.
- They favor stocks. Individual
stocks remain a clear favorite — 8 percentage points above all
other asset classes — at 65 percent. Equity mutual funds are the
second most-preferred asset class at 57 percent, followed by ETFs
at 46 percent.
- They see increased potential in the
health care and information technology sectors. Interest in the
former rose 8 percentage points to 64 percent, while the latter
rose 6 percentage points to 50 percent. According to the survey,
these are the two most popular sectors this quarter.
- They see opportunity abroad.
With the U.S. dollar still strong, interest in emerging markets
continues to grow, up 12 percentage points from the first quarter.
Overall, interest in international investments across regions and
asset classes is up over the last few quarters.
“After six years of a bull market and U.S. market indices at
all-time highs, it’s natural for investors to differ in their
opinions on what will happen next,” said George Fischer, SVP,
Trading, Margin Lending and Cash Management at E*TRADE Financial.
“While investors seem cautiously optimistic about the short-term,
the complex and evolving macroeconomic events happening
domestically and abroad will further shape this debate.”
Given the uncertainty over market direction reflected in the
survey results, Mr. Fischer offered the following general
insights:
- Diversify and manage risk.
Maintaining a diverse portfolio across asset classes and sectors
can help reduce risk during uncertain times in the market.
Investment products such as mutual funds and ETFs can offer
diversification built into one investment, simplifying the
decision-making process. Experienced investors can also use options
to help manage the impact of declines in their portfolios or a
single stock position.
- Consider both the long- and
short-term implications. A strong dollar can deliver more bang
for an investor’s buck when investing abroad, but subsequent
currency fluctuations can also affect returns. When considering
taking advantage of market trends like the strong dollar, investors
should make sure any reallocation stays within their risk tolerance
and is consistent with their long-term goals.
- Define what the right asset will
look like. It is important to be systematic when considering a
new asset class. Stock, ETF, and mutual fund screeners can help
investors narrow down investment opportunities by offering a host
of analysis techniques and filters, including fundamental and
technical indicators, for example. Experienced investors rate
screeners, which can be found on etrade.com, as the most useful
tool when looking for investments.
E*TRADE is a partner in helping investors balance today’s needs
with tomorrow’s goals, through pioneering digital tools and
personalized, smart guidance online and from seasoned financial
consultants. To learn more about E*TRADE’s trading and investing
platforms and tools, visit etrade.com.
For useful insight from E*TRADE and third-party investment
professionals, follow the company on Twitter, @ETRADE.
About E*TRADE Financial
E*TRADE Financial and its subsidiaries provide financial
services, including online brokerage and related banking products
and services to retail investors. Specific business segments
include Trading and Investing and Balance Sheet Management.
Securities products and services, including stocks, bonds mutual
funds, options, and ETFs are offered by E*TRADE Securities LLC
(Member FINRA/SIPC). Managed Account Solutions are offered through
E*TRADE Capital Management, LLC, an investment adviser registered
with the Securities and Exchange Commission. Bank products and
services are offered by E*TRADE Bank, a Federal savings bank,
Member FDIC, or its subsidiaries and affiliates. More information
is available at www.etrade.com.
ETFC-G
About ResearchNow
ResearchNow, a leading digital data collection provider, powers
market research insights. They enable companies to listen to and
interact with the world’s consumers and business professionals
through online panels, as well as mobile, digital, and social media
technologies. Their team operates in over 20 offices globally and
is recognized as the market research industry’s leader in client
satisfaction. They foster a socially responsible culture by
empowering their employees to give back. To find out more or begin
a conversation, visit www.researchnow.com.
About the Survey
This wave of the survey was conducted from March 31 to April 10
of 2015 among an online U.S. sample of 1002 self-directed active
investors who manage at least $10,000 in an online brokerage
account. The survey has a margin of error of ±3.1 percent at the 95
percent confidence level. It was fielded and administered by
ResearchNow. The panel is 65 percent male and 35 percent female
with an even distribution across online brokerages, geographic
regions, and age bands.
Important Notices
E*TRADE Financial, E*TRADE, and the E*TRADE logo are trademarks
or registered trademarks of E*TRADE Financial Corporation.
© 2015 E*TRADE Financial Corporation. All rights reserved.
E*TRADE Financial Corporation and ResearchNow are separate
companies that are not affiliated. E*TRADE Financial Corporation
engages ResearchNow to program, field, and tabulate the study.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20150501005035/en/
E*TRADE Media
RelationsThayer Fox,
646-521-4418thayer.fox@etrade.comorE*TRADE
Investor RelationsBrett Goodman,
646-521-4406brett.goodman@etrade.com
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