E*TRADE Study Reveals Varying Investing Mindsets Amid New Administration
February 21 2017 - 8:05AM
Business Wire
Retail investors express divergent views on how
to deploy capital under the new administration
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
a political and age divide among experienced investors regarding
how to manage their portfolios under the Trump administration:
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- Nearly seven out of ten conservatives
surveyed believe the new administration will benefit their
retirement portfolio, compared to only three out of ten
liberals.
- 64% of liberals plan to make changes to
their portfolio in response to President Trump’s policies, compared
to 57% of conservatives.
- Three out of five investors surveyed
are most excited about personal tax cuts during the Trump
presidency. However, when looking at political orientation,
liberals (64%) show greater excitement levels for personal tax cuts
than conservatives (58%).
- The data suggest liberals may be trying
to find a silver lining in President Trump’s infrastructure plans,
with nearly seven out of ten excited about this initiative,
compared to about three out of ten conservatives.
“We know that politics and passion go hand in hand, and are
seeing that these factors are influencing investing decisions,”
said Mike Loewengart, VP of Investment Strategy at E*TRADE
Financial. “While deep-seated political beliefs may be difficult to
curb, we always caution against emotional investing, urging
investors to be guided by their head and not their heart.”
Mr. Loewengart offered the following observations on sentiment
from different age groups:
- Investors foresee a Trump bump in
their retirement portfolio. More than half of all investors
surveyed believe the new administration will benefit their
retirement portfolio. Boomers (56%) and Millennials (55%)
over-index in their optimism regarding the Trump bump, while Gen X
investors (50%) are split down the middle.
- For younger investors, it’s show me
the money. Nearly seven out of ten Millennial investors are
most excited about personal tax cuts under the new administration,
compared to three out of five Gen Xers, and just more than half of
all Boomers.
- Boomers are staying put. Nearly
three out of five Boomers—the highest out of any age
demographic—plan to make no changes to their portfolio this quarter
in response to the President’s policies, perhaps taking to heart
that investing growth tends to transcend any individual
presidency.
Visit E*TRADE’s Newsroom for the full Q1’17 StreetWise study
results.
E*TRADE helps investors balance today’s needs with tomorrow’s
goals, through pioneering digital tools coupled with guidance
online and from financial consultants. To learn more about
E*TRADE’s trading and investing platforms and tools, visit
etrade.com.
For useful trading and investing insight from E*TRADE, follow
the company on Twitter, @ETRADE.
About the Survey
This wave of the survey was conducted from January 1 to January
10 of 2017 among an online U.S. sample of 904 self-directed active
investors who manage at least $10,000 in an online brokerage
account. The survey has a margin of error of ±3.18 percent at the
95 percent confidence level. It was fielded and administered by
ResearchNow. 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). The
panel is 65 percent male and 35 percent female, as well as 62%
conservative and 38% liberal, with an even distribution across
online brokerages, geographic regions, and age bands.
Referenced Data
1. What Trump administration
economic proposals are you most excited about? (Question asked
beginning in Q1’17; Choose top two)
AGE Ideology TOTAL <34
35–54 55+ Con Lib Personal tax cuts 60%
67% 60% 54% 58% 64% Spending more on infrastructure 47% 49% 44% 52%
34% 69% Cutting back on government regulations 46% 44% 49% 46% 57%
29% Business tax cuts 26% 24% 27% 28% 32% 18% Redoing U.S. trade
21% 16% 20%
23% 19% 20%
2. Which of the following
strategies are you planning to or have you deployed as Donald Trump
takes office? (Question asked beginning in Q1’17; Choose top
two)
AGE Ideology TOTAL <34
35–54 55+ Con Lib Move out of current
positions and in to cash 10% 15% 10% 7% 8% 15% Move out of cash and
in to new positions 20% 29% 21% 9% 23% 14% Change the allocations
in my portfolio 30% 33% 30% 26% 26% 35% Make no changes to my
portfolio 40% 23% 39% 57% 43% 35% Other 0%
0% 0% 1% 0%
1%
3. When it comes to investing
for retirement, do you think the Trump Presidency… (Question
asked beginning in Q1’17; Choose three)
AGE Ideology TOTAL <34
35–54 55+ Con Lib Benefit (Top 2
Box) 54% 55% 50% 56% 68%
30% Will greatly benefit your retirement portfolio 11% 10%
12% 11% 15% 4% Will somewhat benefit your retirement portfolio 43%
45% 38% 45% 53% 26%
Will have no impact on your retirement
portfolio 21% 21% 22% 21%
21% 22% Will somewhat hurt your retirement portfolio
18% 17% 19% 19% 8% 35% Will greatly hurt your retirement portfolio
7% 7% 9% 4% 3% 13%
Will hurt your retirement portfolio (Bottom 2
Box) 25% 24%
28% 23%
11% 48%
“Millennials” defined as age 25–34 //
“Gen X” defined as age 35–54 // “Baby Boomers” defined as age
55+
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, a Registered Investment Adviser. 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. ETFC-G
E*TRADE Financial, E*TRADE, and the E*TRADE logo are trademarks
or registered trademarks of E*TRADE Financial Corporation.
© 2017 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.
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.
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