Almost Half of Investors Surveyed Expect Market Downturn, According to Latest E*TRADE Study
Bearish sentiment rises while nearly half of investors expect the market to drop at least 10 percent by end of year
- More than any other, investors choose "Dazed and Confused" as the movie title that best describes how they feel about the market today, and significantly more investors chose it this quarter over last.
- Investors are more bearish than any quarter in the past two years, now at half the survey population.
- Nearly half of all investors believe the U.S. equity market will experience a correction (drop of at least 10 percent) or a bear market (drop of at least 20 percent) by end of year.
"After an exceptionally long bull market, investors may be bracing for the tide to turn," commented
- Dollar-cost averaging can reduce cost basis. Dollar-cost averaging is an investment approach in which investors set a defined schedule for buying into the markets. Weaker markets allow investors to buy more shares when prices are low, and fewer when they are high, enabling investors to potentially reduce the average cost basis.
- Diversification can help weather storms. Well-diversified portfolios may be better positioned for changing market conditions, as some industries and instruments tend to be particularly hard hit during market downturns.
- Timing the market is difficult. While the current macro environment may paint a picture of global uncertainty, knee-jerk reactions rarely achieve the intended results. Market swings are common, and investors are wise to stay focused on the long term.
Visit E*TRADE's Newsroom for the full Q415 StreetWise study results.
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The information provided herein is for general informational purposes only and should not be considered investment advice. Past performance does not guarantee future results. Diversification does not guarantee investment returns and does not eliminate the risk of loss. Dollar-cost averaging does not assure a profit nor protect against a loss in declining markets. Since such a plan involves continuous investment in securities regardless of fluctuating prices, an investor should consider his or her financial ability to continue purchases through periods of low price levels. ETFC-G
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About the Survey
This wave of the survey was conducted from
|If you had to pick a movie title that best describes how you personally feel about the market right now, which would it be?|
|Dazed and Confused||38%||29%||25%||27%||27%|
|Singin' in the Rain||9%||13%||14%||14%||13%|
|Fear and Loathing in
|When it comes to the current market are you?|
|Which of the following do you think is most likely to occur in the next three months? The U.S. equity market will|
|Experience a correction (drop of 10% or more)||32%||39%||34%||39%||39%|
|Experience a bear market (drop of 20% or more)
**answer included beginning in Q415**
|Stay basically where it is||30%||39%||37%||31%||32%|
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