E*TRADE Study Reveals While Majority Bullish, Sentiment Slid from Q1 Peaks
July 12 2017 - 4:05PM
Business Wire
While investors still believe the market may
have steam left, bearishness has increased gradually for the past
two quarters
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
that while many believe the market still has room to run, bullish
sentiment continued a gradual decline from Q1’17 highs:
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- The majority remain bullish at 60
percent, yet this view has decreased three percentage points from
Q2’17 and five percentage points from Q1’171 highs.
- Slightly more than three out of five
investors believe the market will rise five percent or more this
quarter, up six percentage points from Q2’17.
- Slightly less than three out of five
investors believe the U.S. economy is healthy enough for additional
rate hikes, down four percentage points from the previous
quarter.
“The market delivered solid returns in the first half of 2017,
but savvy investors know the bull ride can’t last forever,”
commented Mike Loewengart, VP of Investment Strategy at E*TRADE
Financial. “Amid higher valuations, further Fed action anticipated,
and significant geopolitical uncertainty, market observers may be
viewing the second half of the year with a dose of healthy
skepticism. Some will undoubtedly seek defensive plays.”
The survey also explored sentiment concerning potential
investment opportunities for the third quarter. Mr. Loewengart
offered insight into those identified:
- International equities. After
lagging for much of the past decade, interest in foreign assets
gained momentum as developed and emerging market equities have
largely outpaced their U.S. counterparts in 2017.
- Energy. Investors believe energy
offers the most potential this quarter. They may be drawn to its
defensive characteristics, coupled with the sector’s potential as a
value play given the decline it experienced throughout 2017.
- Information technology. Investor
interest in IT remained steady from the previous quarter, despite
suffering from a June sell-off. Since the sector has still
performed well over the year, investors may be taking a longer view
and seeing the recent dip as a buying opportunity.
1. E*TRADE. (2017). E*TRADE Study Reveals Retail Bulls Are
Charging into the New Year.
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About the Survey
This wave of the survey was conducted from July 1 to July 10 of
2017 among an online U.S. sample of 959 self-directed active
investors who manage at least $10,000 in an online brokerage
account. The survey has a margin of error of ±3.16 percent at the
95 percent confidence level. It was fielded and administered by
Research Now. 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 60 percent male and 40 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?
Q3’17 Q2’17 Q1’17
Q4’16 Q3’16 Bullish 60% 63% 65% 55% 55%
Bearish 40% 37% 35% 45%
45%
How do you predict the market will end this
quarter? Q3’17 Q2’17 Q1’17 Q4’16
Q3’16 Rise 61% 55% 60%
54% 41% Rise 20% 1% 0% 1% 1% 1% Rise 15% 3% 4% 3% 2%
1% Rise 10% 14% 13% 13% 8% 5% Rise 5% 43% 38% 43% 44% 34%
Stay
basically where it is 21% 23% 18%
22% 28% Drop 5% 13% 16% 17% 19% 24% Drop 10% 4% 4% 4%
4% 6% Drop 15% 0% 2% 1% 1% 1% Drop 20% 1% 0% 0% 0% 0%
Drop
18% 22% 22%
24% 31% Is the U.S. economy
healthy enough for the Fed to enact additional rate hikes?
Q3’17 Q2’17 Q1’17 Q4’16 Q3’16
Agree (Top 2 Box) 58% 62% 63%
53% 33% Strongly agree 14% 16% 15% 12% 6% Somewhat
agree 44% 46% 48% 41% 27%
Neither agree nor disagree
24% 26% 23% 27% 30% Somewhat
disagree 15% 10% 12% 15% 28% Strongly disagree 3% 2% 2% 5% 9%
Disagree (Bottom 2 Box) 18%
12% 14% 20%
37% The health of the markets outside the U.S.
appeals to me as an investor this quarter. Q3’17
Q2’17 Q1’17 Q4’16 Q3’16 Agree (Top 2
Box) 53% 50% 43% 40% 33%
Strongly agree 14% 12% 10% 12% 8% Somewhat agree 39% 38% 33% 28%
25%
Neither agree nor disagree 29% 29%
28% 28% 21% Somewhat disagree 14% 16% 24% 25%
31% Strongly disagree 4% 5% 5% 7% 15%
Disagree (Bottom 2
Box) 18% 21%
29% 32% 46% What
industries do you think offer the most potential this quarter?
(Top three)
Q3'17 Q2'17 Q1'17 Q4'16
Q3'16 Energy 46% 45% 53% 46% 43% Information technology 45%
46% 34% 50% 44% Financials 43% 39% 46% 32% 25% Health care 41% 39%
42% 45% 54% Utilities 24% 23% 22% 25% 31% Industrials 24% 28% 29%
17% 16% Telecommunication services 24% 24% 19% 27% 26% Materials
20% 20% 20% 14% 16% Consumer staples 20% 20% 18% 27% 30% Consumer
discretionary 16% 15% 16% 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. Securities products and services are
offered by E*TRADE Securities LLC (Member FINRA/SIPC) and
OptionsHouse (Member FINRA/SIPC/NFA). 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. 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.
E*TRADE Financial, E*TRADE, the E*TRADE logo, and OptionsHouse
are trademarks or registered trademarks of E*TRADE Financial
Corporation. ETFC-G
© 2017 E*TRADE Financial Corporation. All rights reserved.
E*TRADE Financial Corporation and Research Now are separate
companies that are not affiliated. E*TRADE Financial Corporation
engages Research Now to program, field, and tabulate the study.
About Research Now
Research Now Group, Inc. is a global leader in digital research
data for better insights and business decisions. The company
provides world-class research data solutions that enable better
decisions and better results for its 3,000 market research,
consulting, media, and corporate clients through access to over 11
million deeply profiled business professionals and consumers in
more than 40 countries. Research Now operates globally with
locations in the Americas, Europe, the Middle East, and
Asia-Pacific, and is recognized as the quality, scale, and customer
satisfaction leader in the market research industry. For more
information, please go to www.researchnow.com.
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