Bullish Sentiment Bucked Back from Two-Year Low, According to E*TRADE Study
July 13 2018 - 8:05AM
Business Wire
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
an increase in positive investor sentiment since last quarter:
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Despite a growing trade war, more than
half of surveyed investors believe market performance will end the
quarter in positive territory, up 6 percentage points from
Q2'18
- Bullish sentiment increased to 57%, a 5
percentage point jump from Q2’18 and a 3 percentage point decline
from Q3’17.
- More than half believe the market will
rise this quarter, up 6 percentage points from Q2’18 and down 9
percentage points from Q3’17.
- Over half of investors believe the US
economy is healthy enough for at least one rate hike in the third
quarter, down 1 percentage points from both Q2’18 and Q3’17.
“Investors today have no shortage of market worries, with
geopolitical tensions, trade escalations, expected rate increases,
and a fair dose of market volatility all contributing to a general
uneasiness,” commented Mike Loewengart, VP of Investment Strategy
at E*TRADE Financial. “But in spite of all of this, it’s
encouraging to see investors balance the negative headlines with
the positive data coming from recent economic reports, suggesting
many may be shrugging off the drama in favor of focusing on
economic fundamentals.”
The survey also explored retail investors’ thoughts about
potential investing opportunities for the third quarter of
2018:
- IT. Interest in IT continued
into the current quarter, with 45% of surveyed respondents again
drawn to the sector. Following a recent pullback in the sector,
investors may be pursuing bargain opportunities on stocks that saw
historically high valuations earlier in the year.
- Energy. The energy sector
largely rebounded to where it started the year, and investors seem
to be paying attention, as 43% of the population expressed
interest. The sector has increased in popularity since Q2, and
surveyed investors continued to rate it high in potential this
quarter compared to other sectors.
- Health care. 41% of all
investors believe the health care sector offers potential in Q3.
Although down 4 percentage points from the previous quarter,
investor interest remains strong, as many tend to view it as a
defensive player that lacks the sensitivity to interest rate hikes
that other defensive sectors like telecom and utilities may
face.
E*TRADE aims to enhance the financial independence of traders
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 July 1 to July 11 of
2018 among an online US sample of 940 self-directed active
investors who manage at least $10,000 in an online brokerage
account. The survey has a margin of error of ±3.20 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% male and 40% female, with an even distribution across
online brokerages, geographic regions, and age bands.
Referenced Data
When it
comes to the current market are you?
Q3’18 Q2’18 Q1’18
Q4’17 Q3’17 Bullish 57%
52% 68% 63% 60% Bearish 43% 48%
32% 37% 40%
How do you
predict the market will end this quarter? Q3’18
Q2’18 Q1’18 Q4’17 Q3’17 Rise
52% 46% 77% 66% 61% Rise 20% 2%
2% 2% 2% 1% Rise 15% 5% 3% 7% 6% 3% Rise 10% 13% 11% 18% 16% 14%
Rise 5% 32% 30% 50% 42% 43%
Stay basically where it is
23% 17% 14% 17% 21% Drop 5% 17%
21% 7% 11% 13% Drop 10% 6% 12% 2% 4% 4% Drop 15% 1% 3% 0% 2% 0%
Drop 20% 1% 1% 0% 0% 1%
Drop 25%
37% 9%
17% 18%
Is the US economy healthy
enough for the Fed to enact additional rate hikes this quarter?
Q3’18 Q2’18 Q1’18 Q4’17 Q3’17
Agree (Top 2 Box) 57% 58% 66%
59% 58% Strongly agree 16% 17% 20% 17% 14% Somewhat
agree 41% 41% 46% 42% 44%
Neither agree nor disagree
27% 25% 25% 27% 24% Somewhat
disagree 13% 13% 7% 12% 15% Strongly disagree 3% 4% 2% 2% 3%
Disagree (Bottom 2 Box) 16%
17% 9%
14% 18%
What industries do you think
offer the most potential this quarter? (Top three)
Q3’18
Q2’18 Q1’18 Q4’17 Q3’17 Information
technology 45% 44% 45% 46% 45% Energy 43% 41% 47% 44% 46% Health
care 41% 46% 41% 43% 41% Financials 41% 40% 43% 39% 43%
Telecommunication services 27% 24% 23% 27% 24% Utilities 24% 22%
19% 22% 24% Industrials 22% 22% 29% 22% 24% Consumer staples 19%
24% 17% 20% 20% Materials 20% 20% 21% 20% 20% Consumer
discretionary 19% 18%
15% 16% 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, and RIA custody solutions are offered by E*TRADE Savings
Bank, both of which are national federal savings banks (Members
FDIC). 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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