E*TRADE Study Reveals Retail Bulls Are Charging into the New Year
January 12 2017 - 4:05PM
Business Wire
Having endured an unpredictable 2016, investors
are significantly more optimistic about the market than they were
one year ago
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 significant rise in positive investor sentiment over the past
year:
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- Bullish sentiment is at 65 percent, the
highest level measured by the survey since Q1’151, and up 20
percentage points from Q1’16.
- Three out of five investors believe the
market will rise this quarter, up 26 percentage points from
Q1’16.
- Investors are most likely to choose
“Easy Rider” as the movie title that best describes their views of
the market, while “Singin’ in the Rain” increased 10 percentage
points from Q1’16, and “Dazed and Confused” dropped 12 percentage
points from Q1’16.
- More than three out of five investors
also believe the U.S. economy is healthy enough for additional rate
hikes this quarter, up 16 percentage points from Q1’16.
“While the market started 2016 on a down note, the year ended
with a bang—closing at near record highs,” commented Mike
Loewengart, VP of Investment Strategy at E*TRADE Financial. “With
the initial uncertainties of the election, the Brexit vote, and a
long anticipated Fed rate hike now in the rearview mirror, many
investors see opportunities in 2017, despite the potential unknowns
of what a Trump presidency may bring.”
Mr. Loewengart also offered insight into investment
opportunities across U.S. sectors:
- Energy. More than half of all
investors believe the energy sector offers potential in Q1, up
seven percentage points from the previous quarter. Interest in the
energy sector is at its highest point in more than a year, perhaps
in response to President-elect Trump’s calls to implement
pro-energy measures.
- Financials. Investor interest in
financials surged 14 percentage points from the previous quarter,
rising to 46 percent in Q1. With additional Fed rate hikes expected
in 2017, investors may view financials as a sector that could
potentially benefit. Additionally, many investors may view the
sector favorably due to potential industry-wide deregulation
proposed by Trump.
- Health care. Interest in health
care remains high with 42 percent of those surveyed interested in
the sector for Q1, perhaps due to the President-elect’s stated
determination to repeal Obamacare and push for industry
deregulation.
1. E*TRADE. (2015). U.S. Equities the Top Choice for
Investors.
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 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 with an even
distribution across online brokerages, geographic regions, and age
bands.
Referenced Data
When it comes to the current market are you?
Q1’17 Q4’16 Q3’16
Q2'16 Q1'16 Bullish 65% 55% 55% 61% 45%
Bearish 35% 45% 45% 39% 55%
If you had to pick a movie title that best
describes how you personally feel about the market right now, which
would it be? Q1'17 Q4'16 Q3'16
Q2'16 Q1'16 Easy Rider 23% 26% 17% 20% 14% Dazed and
Confused 21% 30% 40% 31% 33% Singin' in the Rain 17% 11% 9% 13% 7%
Raging Bull 16% 7% 5% 6% 4% Pulp Fiction 11% 12% 12% 12% 13% Fear
and Loathing in Las Vegas 5% 6% 8% 8% 11% Jackass 4% 6% 5% 6% 7%
Apocalypse Now 2% 3% 4% 4% 9%
How do you predict the market will end this
quarter?
(Question asked beginning in Q1’16)
Q1’17 Q4’16 Q3’16 Q2’16 Q1’16
Rise 60% 54% 41% 59% 34%
Rise 20% 1% 1% 1% 1% 0% Rise 15% 3% 2% 1% 2% 3% Rise 10% 13% 8% 5%
9% 10% Rise 5% 43% 44% 34% 47% 21%
Stay basically where it
is 18% 22% 28% 21% 20% Drop
5% 17% 19% 24% 16% 23% Drop 10% 4% 4% 6% 4% 16% Drop 15% 1% 1% 1%
0% 5% Drop 20% 0% 0% 0% 0% 2%
Drop 22%
24% 31% 20% 46%
Is the U.S. economy healthy enough for the
Fed to enact additional rate hikes this quarter? Q1’17
Q4’16 Q3’16 Q2’16 Q1’16 Agree (Top 2
Box) 63% 53% 33% 41% 47%
Strongly agree 15% 12% 6% 9% 7% Somewhat agree 48% 41% 27% 32% 40%
Neither agree nor disagree 23% 27% 30%
29% 27% Somewhat disagree 12% 15% 28% 20% 19%
Strongly disagree 2% 5% 9% 10% 7%
Disagree (Bottom 2 Box)
14% 20% 37%
30% 26%
What industries
do you think offer the most potential this quarter? (Top three)
Q1'17 Q4'16 Q3'16 Q2'16
Q1'16 Energy 53% 46% 43% 48% 38% Financials 46% 32% 25% 29%
32% Health care 42% 45% 54% 56% 60% Information technology 34% 50%
44% 51% 53% Industrials 29% 17% 16% 19% 16% Utilities 22% 25% 31%
17% 18% Materials 20% 14% 16% 14% 13% Telecommunication services
19% 27% 26% 24% 26% Consumer staples 18% 27% 30% 27% 30% Consumer
discretionary 16% 17% 15% 17%
15%
# # #
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 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
There are risks associated with certain industries or companies
within an industry. This could cause performance to be susceptible
to the economic, business, government regulation, or other
developments that affect those industries.
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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