Several data points suggest that retail market
views went south, but investors continue to identify
opportunities
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
investor views of the market turned less positive:
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- Majority of investors remain bullish at
55 percent, down 6 percentage points from the previous
quarter.
- While most (69 percent) believe the
market will either stay where it is or rise, significantly more
investors believe the market will drop this quarter, up 11
percentage points to 31 percent.
- Investors are most likely to choose
“Dazed and Confused” as the movie title that best describes their
views of the market this quarter, up 9 percent from Q2 and at the
highest level in more than a year.
- Significantly fewer investors believe
the U.S. economy is healthy enough for additional rate hikes this
quarter, down 8 percentage points to 33 percent.
“Brexit and the resulting market volatility cast a shadow on
investors’ views of the market,” commented Mike Loewengart, VP of
Investment Strategy at E*TRADE Financial. “That said, the majority
remain bullish, and it’s important to remember that within the
context of a long-term investing plan, market disruptions can
present opportunities for investors savvy enough to research and
find them.”
Mr. Loewengart offered insight into the following opportunities
that investors identified in the survey this quarter:
- Utilities. Investor interest in
the utilities sector rose sharply in Q3 up 14 percentage points to
31 percent. Investors seeking low risk and high dividends are drawn
to the utilities sector, viewing it as a haven during periods of
market volatility.
- Consumer staples. Nearly one out
of three investors this quarter believes the consumer staples
sector offers potential, up 3 percentage points. Much like
utilities, investors gravitate to this sector because they believe
it can potentially be shielded from geopolitical events.
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 insight from E*TRADE and third-party investment
professionals, follow the Company on Twitter, @ETRADE.
About the Survey
This wave of the survey was conducted from July 2 to July 11 of
2016 among an online U.S. sample of 949 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 with an even distribution
across online brokerages, geographic regions, and age bands.
Referenced Data
When it comes to the current market are you?
Q3’16 Q2'16 Q1'16
Q4'15 Q3'15 Bullish 55%
61% 45% 50% 56% Bearish 45% 39%
55% 50% 44%
If you had to pick a movie title that
best describes how you personally feel about the market right now,
which would it be?
Q3'16 Q2'16 Q1'16 Q4'15 Q3'15
Dazed and Confused 40% 31% 33% 38% 29% Easy Rider 17% 20% 14% 18%
20% Pulp Fiction 12% 12% 13% 12% 14% Singin' in the Rain 9% 13% 7%
9% 13% Fear and Loathing in Las Vegas 8% 8% 11% 7% 8% Raging Bull
5% 6% 4% 5% 6% Jackass 5% 6% 7% 6% 6% Apocalypse Now
4% 4% 9% 4%
5%
How do you predict the market will end this
quarter?
(Question asked beginning in Q1’16)
Q3’16 Q2’16 Q1’16 Rise 41%
59% 34% Rise 20% 1% 1% 0% Rise 15% 1% 2% 3% Rise 10%
5% 9% 10% Rise 5% 34% 47% 21%
Stay basically where it is
28% 21% 20% Drop 5% 24% 16% 23% Drop 10% 6% 4%
16% Drop 15% 1% 0% 5% Drop 20% 0% 0% 2%
Drop
31% 20% 46%
Is the U.S. economy healthy enough for the Fed to enact
additional rate hikes this quarter?
(Question asked beginning in Q1 ’16)
Q3’16 Q2’16 Q1’16 Agree (Top 2 Box)
33% 41% 47% Strongly agree 6% 9% 7% Somewhat
agree 27% 32% 40%
Neither agree nor disagree 30%
29% 27% Somewhat disagree 28% 20% 19% Strongly
disagree 9% 10% 7%
Disagree (Bottom 2 Box)
37% 30% 26%
How interested are you in each of the
following sectors, without taking into account the investment
products which you can invest through? (% extremely or very
interested)
Q3'16 Q2'16 Q1'16 Q4'15 Q3'15
Large U.S. companies (large-cap) 47% 46% 42% 45% 56% Mid-sized U.S.
companies (mid-cap) 37% 43% 35% 36% 47% Small U.S. companies
(small-cap) 31% 34% 28% 32% 44% Domestic bonds / debt 19% 14% 17%
18% 21%
International companies in developed
markets (e.g., UK, Germany, Spain, Italy, Greece, France,
Japan)
15% 20% 19% 22% 27%
International companies in emerging
markets (e.g., Brazil, Russia, India, China, Korea, Malaysia,
Mexico)
12% 15% 14% 15% 23% International bonds / debt issued in developed
markets 10% 13% 10% 11% 14% International bonds / debt issued in
emerging markets 9% 9%
10% 11% 15%
What industries do you think offer the
most potential this quarter? (Top three)
Q3'16 Q2'16 Q1'16 Q4'15 Q3'15
Health care 54% 56% 60% 57% 68% Information technology 44% 51% 53%
45% 46% Energy 43% 48% 38% 41% 48% Utilities 31% 17% 18% 20% 16%
Consumer staples 30% 27% 30% 35% 23% Telecommunication services 26%
24% 26% 22% 23% Financials 25% 29% 32% 31% 34% Industrials 16% 19%
16% 14% 14% Materials 16% 14% 13% 14% 13%
Consumer discretionary
15%
17%
15%
20%
15%
If you could give one piece of advice
to a friend or family member who is thinking of investing right
now, would it be to get into... (Top four)
Q3'16
Q2'16
Q1'16
Q4'15
Q3'15
Individual stocks 63% 65% 63% 65% 67% Equity mutual funds 57% 55%
52% 55% 57% ETFs 44% 42% 40% 40% 45% Money market funds or other
cash-like instruments 40% 41% 42% 44% 45% Fixed income mutual funds
38% 38% 38% 35% 36% Bonds 38% 37% 31% 29% 28% Investable properties
36% 36% 35% 36% 36% CDs 22% 26% 27% 25% 21% Commodities 17% 15% 17%
19% 15% Treasury bills 12% 15% 14% 14% 14% Foreign exchange (Forex
or FX) 10% 8% 12% 12% 11% Hedge funds 10% 9% 11% 11% 10% Futures
9% 8% 12%
9% 9%
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. ETFC-G
E*TRADE Financial, E*TRADE, and the E*TRADE logo are trademarks
or registered trademarks of E*TRADE Financial Corporation.
© 2016 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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version on businesswire.com: http://www.businesswire.com/news/home/20160714006245/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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