E*TRADE Study Reveals Bullish Sentiment Hits Pre-Pandemic Levels as Positive Views on the Economy Improve Significantly
Despite investor optimism, the majority believe
the market is in a bubble
E*TRADE Financial Holdings, LLC today announced results from the
most recent wave of StreetWise, the E*TRADE quarterly tracking
study of experienced investors. Results indicate investor views
across the market and the economy improved:
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(Graphic: Business Wire)
- Bullish sentiment rose. Bullish sentiment increased 4
percentage points since last quarter to 61%—matching pre-pandemic
- And more believe the economy is in better shape. Nearly
half of investors (46%) would give the US economy an A or B grade,
increasing 15 percentage points from Q1.
- COVID concerns retreat while volatility concerns
increase. Concern around coronavirus-related investment risk
dropped 8 percentage points to 22%. Market volatility concerns
increased 3 percentage points and now rank as the top risk to
investor portfolios, at 26%.
- Yet the majority of investors believe we’re in a market
bubble. Almost three out of four (69%) investors think we are
fully or somewhat in a market bubble, up 3 percentage points from
“Despite investor unease as interest rates shot higher over the
last quarter, optimism grew as the market hit new all-time highs,
vaccines increased, stimulus measures continued, and earnings
estimates are high,” said Mike Loewengart, Managing Director of
Investment Strategy at E*TRADE Financial. “But while the market is
running hot, investors should keep a watchful eye on their
portfolios to see if now is a good time to rebalance to ensure
allocations remain mapped to their own goals and risk tolerances.
Amid the increasingly maturing recovery we’ve seen these past few
months, diversification is critical to ensure one’s portfolio
continues to benefit as disparate parts of the market pick up steam
or cool off.”
The survey explored investor views on sector opportunities for
the second quarter of 2021:
- Health care. The sector remains number one in the eyes
of investors, but interest decreased significantly—down 16
percentage points from last quarter—as vaccination
- IT. Despite interest rate headwinds, the tech sector
remains a perennial retail fan favorite, with over two out of five
(41%) seeing opportunity in the sector.
- Energy. For the second consecutive quarter, the energy
sector ranked third in investor interest (34%), as economies around
the globe continue to reopen and recover.
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About the Survey
This wave of the survey was conducted from April 1 to April 12
of 2021 among an online US sample of 957 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 Holdings, LLC and Important
E*TRADE Financial Holdings, LLC 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 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 registered
trademarks of E*TRADE Financial Holdings, LLC. ETFC-G
© 2021 E*TRADE Financial Holdings, LLC, a business of Morgan
Stanley. All rights reserved.
E*TRADE Financial 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.
When it comes to the current market,
What grade would you give the current
state of the U.S. economy right now?
Top 2 Box
Which of the following risks are you
most concerned about when it comes to your portfolio? (Top
US trade tensions
New presidential administration
Coronavirus and other pandemic
Economic weakness abroad
Fed monetary policy
Gridlock in Washington
Steepening yield curve
Softening job market
None of these
Do you think current stock valuations
would suggest that right now we are…
Top 2 Box
Fully in a market bubble
In somewhat of a market bubble
Approaching a market bubble
Not close to a market bubble
What industries do you think offer the
most potential this quarter?
version on businesswire.com: https://www.businesswire.com/news/home/20210412005872/en/
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