Positive sentiment increased across several key
measures despite a potential rate hike and the upcoming U.S.
presidential election
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 decisive uptick in positive investor sentiment:
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- Slightly more than half of all
investors believe the market will rise this quarter, up 13
percentage points from Q3.
- Slightly more than half of all
investors also believe the U.S. economy is healthy enough for
additional rate hikes this quarter, up 20 percentage points from
Q3.
- “Easy Rider” is catching up to “Dazed
and Confused” as the movie title that best describes investor views
of the market. Since Q3, the former increased 9 percentage points,
while the latter dropped 10 percentage points.
- The majority of investors remain
bullish at 55 percent.
“While Q3 saw investors bracing for the aftershocks of Brexit,
going into Q4 investors’ optimism in the market and U.S. economy
appears remarkably strong given possible uncertainty surrounding
the election and additional Fed action,” commented Mike Loewengart,
VP of Investment Strategy at E*TRADE Financial. “Investors may have
taken to heart the reality that non-political macro events, like
interest rates and inflation, typically affect the market much more
than elections.”
The survey also explored where investors feel potential
investment opportunities may be this quarter. Mr. Loewengart
offered insight into those identified:
- Information technology. Half of
all investors believe the information technology sector offers
potential in Q4, up 6 percentage points from the previous quarter.
After investor interest in information technology dipped in Q3, the
sector returned to favorability, possibly buoyed by attractive
valuations.
- Financials. Investor sentiment
in financials rose to 32 percent in Q4, up 7 percentage points. As
the possibility of a Fed rate hike in Q4 increases, investors may
view financials as a sector that could benefit from interest rates
moving higher.
- International markets. While
investors still favor domestic markets, interest in international
markets—both developed and emerging—has increased since Q3. Perhaps
interest in these markets—specifically the developed countries in
Europe—may have risen as concerns over the impact of Brexit may
have subsided.
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 October 1 to October
10 of 2016 among an online U.S. sample of 954 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?
Q4’16 Q3’16
Q2'16 Q1'16
Q4'15 Bullish 55% 55% 61% 45% 50% Bearish
45% 45%
39% 55% 50%
If you had to pick a movie title that best describes how
you personally feel about the market right now, which would it
be? Q4'16
Q3'16 Q2'16
Q1'16 Q4'15 Dazed and Confused
30% 40% 31% 33% 38% Easy Rider 26% 17% 20% 14% 18% Pulp Fiction 12%
12% 12% 13% 12% Singin' in the Rain 11% 9% 13% 7% 9% Raging Bull 7%
5% 6% 4% 5% Fear and Loathing in Las Vegas 6% 8% 8% 11% 7% Jackass
6% 5% 6% 7% 6% Apocalypse Now 3%
4% 4% 9%
4%
How do you predict the market will end
this quarter?
(Question asked beginning in Q1’16)
Q4’16 Q3’16
Q2’16 Q1’16
Rise 54% 41% 59% 34% Rise 20% 1%
1% 1% 0% Rise 15% 2% 1% 2% 3% Rise 10% 8% 5% 9% 10% Rise 5% 44% 34%
47% 21%
Stay basically where it is 22% 28%
21% 20% Drop 5% 19% 24% 16% 23% Drop 10% 4% 6% 4% 16%
Drop 15% 1% 1% 0% 5% Drop 20% 0% 0% 0% 2%
Drop
24% 31%
20% 46%
Is the U.S. economy healthy enough for the Fed to enact
additional rate hikes this quarter?
Q4’16 Q3’16
Q2’16 Q1’16 Agree (Top 2
Box) 53% 33% 41% 47% Strongly agree
12% 6% 9% 7% Somewhat agree 41% 27% 32% 40%
Neither agree nor
disagree 27% 30% 29% 27% Somewhat
disagree 15% 28% 20% 19% Strongly disagree 5% 9% 10% 7%
Disagree
(Bottom 2 Box) 20%
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)
Q4'16
Q3'16 Q2'16
Q1'16 Q4'15 Large U.S.
companies (large-cap) 47% 47% 46% 42% 45% Mid-sized U.S. companies
(mid-cap) 36% 37% 43% 35% 36% Small U.S. companies (small-cap) 32%
31% 34% 28% 32% Domestic bonds/debt 23% 19% 14% 17% 18%
International companies in developed markets (e.g., UK, Germany,
Spain, Italy, Greece, France, Japan) 23% 15% 20% 19% 22%
International companies in emerging markets (e.g., Brazil, Russia,
India, China, Korea, Malaysia, Mexico) 20% 12% 15% 14% 15%
International bonds/debt issued in developed markets 15% 10% 13%
10% 11% International bonds/debt issued in emerging markets
17% 9% 9%
10% 11%
What industries do you think offer the most potential this
quarter? (Top three)
Q4'16
Q3'16 Q2'16
Q1'16 Q4'15
Information technology 50% 44% 51% 53% 45% Health care 45% 54% 56%
60% 57% Energy 46% 43% 48% 38% 41% Consumer staples 27% 30% 27% 30%
35% Utilities 25% 31% 17% 18% 20% Telecommunication services 27%
26% 24% 26% 22% Financials 32% 25% 29% 32% 31% Industrials 17% 16%
19% 16% 14% Consumer discretionary 17% 15% 17% 15% 20% Materials
14% 16%
14% 13% 14%
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161017005814/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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