E*TRADE Study Reveals Investor Bullishness at Historic Highs
January 17 2018 - 8:05AM
Business Wire
Following a banner year of market gains, more
than three out of four investors still believe the market will rise
this quarter
E*TRADE Financial Corporation (NASDAQ:ETFC) today announced
results from the most recent wave of StreetWise, the E*TRADE
quarterly tracking study of experienced investors. Results indicate
a significant rise in positive investor sentiment quarter over
quarter and year over year:
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- The majority remain bullish at 68
percent, increasing five percentage points from Q4’17, and three
percentage points from Q1’17.
- Nearly eight out of ten investors
believe the market will rise this quarter, up 11 percentage points
from Q4’17, and 17 percentage points from Q1’17.
- Two out of three investors believe the
US economy is healthy enough for at least one rate hike in the
first quarter, up seven percentage points from the previous
quarter, and three percentage points from Q1’17.
“Investor optimism in this market has reached new heights
following a year of serious growth,” commented Mike Loewengart, VP
of Investment Strategy at E*TRADE Financial. "While there are more
than a few uncertainties to keep investors awake at night, they are
clearly reacting to the roundly positive economic data that has
been coming in at a steady stream, not to mention the boost that
tax reform may bring. And as we approach our first earnings season
of the year, investors are eying a variety of opportunities across
the market.”
The survey also explored retail investors’ thoughts regarding
potential investing opportunities for the first quarter:
- Energy. Nearly half of investors
believe the energy sector offers potential in Q1, up three
percentage points from the previous quarter. Interest in the energy
sector remains strong as the current administration has opened up
offshore drilling and stronger crude oil prices helped push the
sector to recent highs.
- Financials. Investors’ interest
in financials rose four percentage points from the previous
quarter. With additional Fed rate hikes expected in 2018, investors
may view financials as a sector that could potentially benefit.
Additionally, many investors may view the sector favorably due to
the potential benefits of a new lower corporate tax rate.
- International. Appetite among
investors for foreign assets increased eight percentage points from
the previous quarter. In 2017, international equities significantly
outpaced domestic equities, breaking a trend that had been in place
since the market bottom of the financial crisis nearly a decade
ago.
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and investors through a powerful digital offering and professional
guidance. To learn more about E*TRADE’s trading and investing
platforms and tools, visit etrade.com.
For useful trading and investing insights from E*TRADE, follow
the company on Twitter, @ETRADE.
About the Survey
This wave of the survey was conducted from January 1 to January
15 of 2018 among an online US sample of 923 self-directed active
investors who manage at least $10,000 in an online brokerage
account. The survey has a margin of error of ±3.23 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 61 percent male and 39 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?
Q1’18 Q4’17 Q3’17 Q2’17 Q1’17
Bullish 68% 63% 60% 63% 65% Bearish 32% 37% 40% 37% 35%
How do you predict the market will end
this quarter?
Q1’18 Q4’17 Q3’17 Q2’17 Q1’17
Rise
77% 66% 61% 55% 60% Rise 20% 2%
2% 1% 0% 1% Rise 15% 7% 6% 3% 4% 3% Rise 10% 18% 16% 14% 13% 13%
Rise 5% 50% 42% 43% 38% 43%
Stay basically where it is
14% 17% 21% 23% 18% Drop 5% 7%
11% 13% 16% 17% Drop 10% 2% 4% 4% 4% 4% Drop 15% 0% 2% 0% 2% 1%
Drop 20% 0% 0% 1% 0% 0%
Drop 9% 17% 18%
22% 22%
Is the US economy healthy enough for
the Fed to enact additional rate hikes this quarter?
Q1’18 Q4’17 Q3’17 Q2’17 Q1’17
Agree (Top 2 Box) 66% 59% 58%
62% 63% Strongly agree 20% 17% 14% 16% 15% Somewhat
agree 46% 42% 44% 46% 48%
Neither agree nor disagree
25% 27% 24% 26% 23% Somewhat
disagree 7% 12% 15% 10% 12% Strongly disagree 2% 2% 3% 2% 2%
Disagree (Bottom 2 Box) 9% 14% 18%
12% 14%
The health of the markets outside the
US appeals to me as an investor this quarter.
Q1’18 Q4’17 Q3’17 Q2’17 Q1’17
Agree (Top 2 Box) 62% 54% 53%
50% 43% Strongly agree 20% 14% 14% 12% 10% Somewhat
agree 42% 40% 39% 38% 33%
Neither agree nor disagree
24% 29% 29% 29% 28% Somewhat
disagree 11% 13% 14% 16% 24% Strongly disagree 3% 4% 4% 5% 5%
Disagree (Bottom 2 Box) 14% 17% 18%
21% 29%
What industries do you think offer the
most potential this quarter? (Top three)
Q1'18 Q4’17 Q3'17 Q2'17 Q1'17
Energy 47% 44% 46% 45% 53% Information technology 45% 46% 45% 46%
34% Financials 43% 39% 43% 39% 46% Health care 41% 43% 41% 39% 42%
Industrials 29% 22% 24% 28% 29% Telecommunication services 23% 27%
24% 24% 19% Materials 21% 20% 20% 20% 20% Utilities 19% 22% 24% 23%
22% Consumer staples 17% 20% 20% 20% 18% Consumer discretionary 15%
16% 16% 15% 16%
# # #
About E*TRADE Financial and Important Notices
E*TRADE Financial and its subsidiaries provide financial
services including brokerage and banking products and services to
retail customers. Securities products and services are offered by
E*TRADE Securities LLC (Member FINRA/SIPC). Commodity futures and
options on futures products and services are offered by E*TRADE
Futures LLC (Member 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, and the E*TRADE logo are trademarks
or registered trademarks of E*TRADE Financial Corporation.
ETFC-G
© 2018 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.
Research Now Group, Inc. provides digital research data and has
locations in the Americas, Europe, the Middle East and
Asia-Pacific. For more information, please go to
www.researchnow.com.
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