E*TRADE Study Reveals Retail Investors See Market Closing the Year on a High Note
October 16 2017 - 8:05AM
Business Wire
Many investors believe the second longest bull
market in history may still have some fight left
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
that many investors believe the market still has room to run as we
head into 2018:
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Many investors believe the second longest
bull market in history may still have some fight left
- The majority remain bullish at 63
percent, increasing three percentage points from Q3’17, and eight
percentage points from Q4’16.
- Two out of three investors believe the
market will rise five percent or more this quarter, up five
percentage points from Q3’17, and twelve percentage points from
Q4’16.
- Slightly less than three out of five
investors believe the US economy is healthy enough for at least one
additional rate hike this quarter, up one percentage point from the
previous quarter, and six percentage points from Q4’16.
“If the market has illustrated anything in the past few months,
it’s that it can take some punches,” commented Mike Loewengart, VP
of Investment Strategy at E*TRADE Financial. “And despite
historically high valuations, further potential Fed action, natural
disasters, and significant geopolitical uncertainty at home and
abroad, retail investors still appear to be eyeing opportunity as
2017 draws to a close.”
The survey also explored retail investors’ thoughts regarding
potential investing opportunities for the fourth quarter. Mr.
Loewengart offered insight into three areas with the most
interest:
- Information technology.
Investors believe IT offers the most potential this quarter, rising
one percentage point from the previous quarter. Despite two bouts
of “tech wreck” in June and July, the sector has performed well
over the year, so investors may be taking a longer view and seeing
the recent dips as a buying opportunity.
- Energy. Investor interest in
energy remained steady from the previous quarter as stronger crude
oil prices helped push the sector to recent highs.
- International. After lagging for
much of the past decade, interest in foreign assets continued to
gain momentum as developed and emerging market equities have
largely outpaced their US counterparts in 2017.
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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.
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the company on Twitter, @ETRADE.
About the Survey
This wave of the survey was conducted from October 1 to October
12 of 2017 among an online US sample of 918 self-directed active
investors who manage at least $10,000 in an online brokerage
account. The survey has a margin of error of ±3.24 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 58 percent male and 42 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?
Q4’17 Q3’17 Q2’17
Q1’17 Q4’16 Bullish 63% 60% 63% 65% 55%
Bearish 37% 40% 37% 35% 45%
How do you predict the market will end this
quarter? Q4’17 Q3’17 Q2’17 Q1’17
Q4’16 Rise 66% 61% 55%
60% 54% Rise 20% 2% 1% 0% 1% 1% Rise 15% 6% 3% 4% 3%
2% Rise 10% 16% 14% 13% 13% 8% Rise 5% 42% 43% 38% 43% 44%
Stay
basically where it is 17% 21% 23%
18% 22% Drop 5% 11% 13% 16% 17% 19% Drop 10%
4%
4% 4% 4% 4% Drop 15% 2% 0% 2% 1% 1% Drop 20% 0% 1% 0% 0% 0%
Drop 17% 18% 22%
22% 24%
Is the US economy healthy enough for
the Fed to enact additional rate hikes this quarter?
Q4’17 Q3’17 Q2’17 Q1’17 Q4’16
Agree (Top 2 Box) 59% 58% 62%
63% 53% Strongly agree 17% 14% 16% 15% 12% Somewhat
agree 42% 44% 46% 48% 41%
Neither agree nor disagree
27% 24% 26% 23% 27% Somewhat
disagree 12% 15% 10% 12% 15% Strongly disagree 2% 3% 2% 2% 5%
Disagree (Bottom 2 Box) 14% 18%
12% 14% 20% The
health of the markets outside the US appeals to me as an investor
this quarter. Q4’17 Q3’17 Q2’17
Q1’17 Q4’16 Agree (Top 2 Box) 54%
53% 50% 43% 40% Strongly agree 14% 14%
12% 10% 12% Somewhat agree 40% 39% 38% 33% 28%
Neither agree nor
disagree 29% 29% 29% 28% 28%
Somewhat disagree 13% 14% 16% 24% 25% Strongly disagree 4% 4% 5% 5%
7%
Disagree (Bottom 2 Box) 17%
18% 21% 29% 32%
What industries do you think offer the most potential
this quarter? (Top three)
Q4’17 Q3'17
Q2'17 Q1'17 Q4'16 Information technology 46%
45% 46% 34% 50% Energy 44% 46% 45% 53% 46% Health care 43% 41% 39%
42% 45% Financials 39% 43% 39% 46% 32% Telecommunication services
27% 24% 24% 19% 27% Utilities 22% 24% 23% 22% 25% Industrials 22%
24% 28% 29% 17% Materials 20% 20% 20% 20% 14% Consumer staples 20%
20% 20% 18% 27% Consumer discretionary 16% 16%
15% 16% 17%
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
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
© 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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