E*TRADE Study Reveals Significant Rebound in Bullish Sentiment
July 09 2020 - 4:05PM
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
investors are bullish on the market but have a wary economic
outlook:
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the full release here:
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- Bullish sentiment returns. Half of surveyed investors
(51%) are bullish, rising 13 percentage points since last
quarter.
- Investors are more likely to believe the market will
rise. Over half of investors (51%) believe the market will
rise, skyrocketing 20 percentage points this quarter.
- But volatility will persist. More than half of investors
(56%) believe volatility will continue, gaining nine percentage
points since last quarter.
- And investors expect a long road to recovery. More than
half (54%) believe it will take more than one year to recover from
the pandemic, and just one out of five investors (23%) would give
the economy an “A” or “B” grade.
“It’s encouraging to see bullish sentiment come charging back
amid Nasdaq highs and consecutive up days in the market,” said Mike
Loewengart, Managing Director of Investment Strategy at E*TRADE
Financial. “That said, it’s important to remember that the economy
is not the market and the market is not the economy. While there
are signs of optimism—consecutive declines in weekly jobless
claims, solid housing data, and strength in retail sales—the US
economy remains in fragile territory. Fears of a second wave are
becoming a reality as virus cases rise in the Sunbelt, rolling back
reopenings and stalling pockets of the economy yet again. While
stimulus measures have helped Americans and Chairman Powell is
committed to deploying his full arsenal, if there is anything 2020
has taught us so far it’s to expect the unexpected.”
The survey explored investor views on sector opportunities for
the third quarter of 2020:
- Health care. Investors see the most potential in health
care, remaining steady since last quarter at 57%. Since the start
of this year, all eyes have been on this sector as pharmaceutical
companies across the world race to create a vaccine. That said,
volatility could be in store as results from treatment trials
emerge.
- IT. Interest in the tech sector rose 9 percentage points
to 47% this quarter. There has been tremendous energy in this
sector given consumer reliance on technology amid stay-at-home
orders.
- Consumer staples. Consumer staples placed third,
dropping 9 percentage points to 33% this quarter. Commonly viewed
as a defensive portfolio play, investors with recession concerns
may choose to incorporate this sector into their overall portfolio
allocation. Further, as a second wave of coronavirus shifts from
speculation to reality, consumers may again be stocking up on home
essentials and cleaning products.
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 9 of
2020 among an online US sample of 873 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
Dynata. 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.
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
© 2020 E*TRADE Financial Corporation. All rights reserved.
E*TRADE Financial Corporation engages Dynata to program, field,
and tabulate the study. Dynata provides digital research data and
has locations in the Americas, Europe, the Middle East and
Asia-Pacific. For more information, please go to
www.dynata.com.
Referenced Data
When it comes to the current market,
are you?
Q3'20
Q2'20
Q1’20
Q4’19
Q3’19
Bullish
51%
38%
61%
50%
61%
Bearish
49%
62%
39%
50%
39%
Where do you predict the market will
end this quarter?
Q3’20
Q2'20
Drop (Net)
35%
60%
Drop - 20%
1%
19%
Drop - 15%
5%
16%
Drop - 10%
13%
16%
Drop - 5%
16%
9%
Stay where it is
14%
9%
Rise 5%
28%
13%
Rise 10%
14%
9%
Rise 15%
6%
4%
Rise 20%
3%
5%
Rise (Net)
51%
31%
Over the next quarter, do you think
volatility will…
Q3'20
Q2'20
Increase
56%
47%
Greatly increase
16%
15%
Somewhat increase
40%
32%
Stay the same
35%
33%
Somewhat decrease
8%
19%
Greatly decrease
1%
2%
Decrease
9%
21%
How long do you think it will take to
recover from the pandemic-related economic downturn?
Q3’20
5+ years
6%
1–5 years
48%
7–12 months
30%
4–6 months
11%
1–3 months
2%
We've already recovered
1%
I don’t know
2%
What grade would you give the current
state of the US economy right now?
Q3’20
Q2’20
A
4%
5%
B
19%
11%
C
40%
29%
D
28%
36%
F
9%
19%
What industries do you think offer the
most potential this quarter?
(Top Three)
Q3'20
Q2'20
Health care
57%
58%
Information technology
47%
38%
Consumer staples
33%
42%
Communication services
28%
26%
Energy
25%
26%
Financials
23%
21%
Real estate
23%
18%
Utilities
20%
28%
Materials
15%
18%
Industrials
15%
14%
Consumer discretionary
14%
11%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200709005843/en/
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