E*TRADE (ETFC) StreetWise Study Reports 'Significant Decline in Positive Investor Sentiment'
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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 decline in positive investor sentiment:
- Bullish sentiment decreased to 52 percent, a 16 percentage point decline from Q1’18 and an 11 percentage point decline from Q2’17.
- Almost three out of five investors believe the US economy is healthy enough for at least one rate hike in the second quarter, down 8 percentage points from Q1’18 and 4 percentage points from Q2’17.
- Just under half believe the market will rise this quarter, down 31 percentage points from Q1’18, and 9 percentage points from Q2’17.
“After a 2017 defined by record-breaking highs, volatility now seems to be the name of the game,” commented Mike Loewengart, VP of Investment Strategy at E*TRADE Financial. "This shouldn’t come as too much of a surprise given trade tensions with China, tech stocks taking one on the chin amid data privacy issues, and some jobs data coming in at the end of the quarter as a bit of a mixed bag. But all that being said, economic fundamentals remain strong as we enter earnings season, and, in taking a long-term view, many equities may be considered bargains by historical standards.”
The survey also explored retail investors’ thoughts regarding potential investing opportunities for the first quarter:
- Health care. Nearly half of all investors believe the health care sector offers potential in Q2, up 5 percentage points from the previous quarter. Investor interest in the sector is at its highest point in more than a year, perhaps due to investors viewing the industry as traditionally defensive but without the interest rate exposure of other defensive sectors like telecom and utilities.
- IT. Despite taking some recent lumps in March, interest in IT remains steady, with 44% of surveyed respondents drawn to the sector. Amid a pronounced pullback in the sector, many investors may be eyeing bargain opportunities on stocks that have witnessed historically high valuations during the recent bull run.
- Energy. While the energy sector started the year as one of the worst performing sectors, its recent resurgence has investors taking note amid a tightening of international supplies. Although interest in the sector declined from Q1, surveyed investors continue to rate it high in potential this quarter compared to other sectors.
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 April 1 to April 11 of 2018 among an online US sample of 947 self-directed active investors who manage at least $10,000 in an online brokerage account. The survey has a margin of error of ±3.18 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 64 percent male and 36 percent female, with an even distribution across online brokerages, geographic regions, and age bands.
|When it comes to the current market are you?|
|How do you predict the market will end this quarter?|
|Stay basically where it is||17%||14%||17%||21%||23%|
|Is the US economy healthy enough for the Fed to enact additional rate hikes this quarter?|
|Agree (Top 2 Box)||58%||66%||59%||58%||62%|
|Neither agree nor disagree||25%||25%||27%||24%||26%|
|Disagree (Bottom 2 Box)||17%||9%||14%||18%||12%|
|What industries do you think offer the most potential this quarter? (Top three)|
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