Investors Show a Bearish Trend
August 04 2015 - 04:05PM
Business Wire
Nearly one in three experienced investors
believe a Fed rate increase would hurt their portfolio
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. Results show
investors have grown increasingly more negative toward the market,
with bearish sentiment the highest it has been all year.
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View the full release here:
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A significant portion of the population also has a negative view
on Federal Reserve rate increases, where nearly one in three
experienced investors believe a rate hike would hurt their
portfolio.
“Retail investors and industry experts agree that a rate
increase within the next year is extremely likely,” said Michael
Loewengart, VP, Investment Strategy at E*TRADE Financial.
“Investors may wish to review their portfolios now, before interest
rates rise, to help ensure their holdings are effectively
positioned.”
Mr. Loewengart offered the following general insights for
investors concerned about Fed rate hikes:
- Ladders may help. A
bond-laddering strategy is a mix of short, intermediate, and
long-term bonds, which may help reduce interest-rate risk in a
rising interest rate environment. With this strategy, an investor
creates a portfolio of fixed income with different maturities in an
effort to provide consistent income and price stability as rates
rise.
- There may be opportunities outside
of bonds. Bonds are not the only asset class affected by rate
hikes. Investors may also consider exploring stocks in industries
and sectors likely to benefit from rising rates, such as
industrials, financials, and real estate.
- Diversify, diversify, diversify.
As with any portfolio, diversification remains a key ingredient for
success. Diversifying across markets and within asset classes may
reduce a portfolio’s sensitivity to rate hikes.
For the full report and infographic of the Q315 StreetWise study
results, click here.
E*TRADE helps 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 banking products and
services to retail customers. 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
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a conversation, visit www.researchnow.com.
About the Survey
This wave of the survey was conducted from July 1 to July 12 of
2015 among an online U.S. sample of 1004 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 tracking study fields quarterly at the beginning
of each quarter and does not reflect data from the complete
quarter. The panel is broken into thirds of active (trade more than
once a week), swing (trade less than once a week but more than once
a month), and passive (trade less than once a month) investors. The
panel is 65 percent male and 35 percent female with an even
distribution across online brokerages, geographic regions, and age
bands.
Referenced Data
When it comes to the current market are you?
Q314
Q414 Q115 Q215 Q315 Bullish 65% 59% 66% 59%
56% Bearish
35% 41% 34% 41% 44%
If the Federal Reserve were to raise
interest rates, how, if at all, would it affect your portfolio?
Higher interest rates would...(Question included only in
the Q315 wave of the study)
Q315 Have a negative impact on my portfolio 32% Have a positive
impact on my portfolio 17% Have no impact on my portfolio 35% I
don't know 16%
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150804006323/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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