Almost Half of Investors Surveyed Expect Market Downturn, According to Latest E*Trade Study
October 30 2015 - 8:05AM
Business Wire
Bearish sentiment rises while nearly half of
investors expect the market to drop at least 10 percent by end of
year
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 indicate
investors are increasingly wary about what direction the market may
take during the remainder of the year:
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- More than any other, investors choose
“Dazed and Confused” as the movie title that best describes how
they feel about the market today, and significantly more investors
chose it this quarter over last.
- Investors are more bearish than any
quarter in the past two years, now at half the survey
population.
- Nearly half of all investors believe
the U.S. equity market will experience a correction (drop of at
least 10 percent) or a bear market (drop of at least 20 percent) by
end of year.
“After an exceptionally long bull market, investors may be
bracing for the tide to turn,” commented Michael Loewengart, VP,
Investment Strategy at E*TRADE Financial. “Fortunately, there are a
series of smart moves investors can consider in the event of a
market shift.”
Mr. Loewengart offered the following general insights for
investors concerned about a market downturn heading into the end of
the year.
- Dollar-cost averaging can reduce
cost basis. Dollar-cost averaging is an investment approach in
which investors set a defined schedule for buying into the markets.
Weaker markets allow investors to buy more shares when prices are
low, and fewer when they are high, enabling investors to
potentially reduce the average cost basis.
- Diversification can help weather
storms. Well-diversified portfolios may be better positioned
for changing market conditions, as some industries and instruments
tend to be particularly hard hit during market downturns.
- Timing the market is difficult.
While the current macro environment may paint a picture of global
uncertainty, knee-jerk reactions rarely achieve the intended
results. Market swings are common, and investors are wise to stay
focused on the long term.
Visit E*TRADE’s Newsroom for the full Q415 StreetWise study
results.
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 and Important Notices
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.
The information provided herein is for general informational
purposes only and should not be considered investment advice. Past
performance does not guarantee future results. Diversification does
not guarantee investment returns and does not eliminate the risk of
loss. Dollar-cost averaging does not assure a profit nor protect
against a loss in declining markets. Since such a plan involves
continuous investment in securities regardless of fluctuating
prices, an investor should consider his or her financial ability to
continue purchases through periods of low price levels. 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 October 1 to October
6 of 2015 among an online U.S. sample of 1000 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
If you had to pick a movie title that best describes how
you personally feel about the market right now, which would it
be? Q415 Q315 Q215 Q115 Q414 Dazed and Confused 38% 29%
25% 27% 27% Easy Rider 18% 20% 26% 25% 23% Pulp Fiction 12% 14% 14%
13% 14% Singin' in the Rain 9% 13% 14% 14% 13% Fear and Loathing in
Las Vegas 7% 8% 6% 6% 7% Raging Bull 5% 6% 8% 7% 8% Jackass 6% 6%
5% 6% 4% Apocalypse Now 4% 5% 3% 3% 4%
When it comes to
the current market are you? Q415 Q315 Q215 Q115 Q414 Bullish
50% 56% 59% 66% 59% Bearish 50% 44% 41% 34% 41%
Which of
the following do you think is most likely to occur in the next
three months? The U.S. equity market will Q415 Q315 Q215
Q115 Q414 Experience a correction (drop of 10% or more) 32% 39% 34%
39% 39% Experience a bear market (drop of 20% or more)
**answer included beginning in Q415**
16% - - - - Rise 22% 22% 29% 31% 29% Stay basically where it is 30%
39% 37% 31% 32%
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/20151030005039/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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