E*TRADE Study Reveals Bearish Sentiment at Three-Year High
Despite bearishness, investors are significantly more likely to "buy the dip" than "sell the rally"
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- Bears take the day. Bearish sentiment rose 16 percentage points, to 54%—one of the biggest quarterly increases in the past three years.
- Trade concerns loom large. Nearly three out of five investors feel
Chinaand trade tensions pose the most risk to their portfolios (59%), followed by Fed rate hikes (38%), and gridlock in Washington(33%).
- They feel volatility is the new normal. More than nine out of 10 investors (91%) believe volatility will rise or stay the same in Q1.
- But the majority still give the economy a passing grade. The majority of surveyed investors (55%) give the economy an A or B grade.
- “Buy the dip” mentality still rules. Four out of five investors (79%) say their strategy is to buy the dip, likely to take advantage of recent market volatility. On the other hand, one out of five investors (21%) prefer to sell the rally.
“Volatility and concerns of a global slowdown are clearly on the hearts and minds of investors today,” said
The survey also explored retail investors’ views on sector opportunities for the first quarter of 2019:
- Health care. Half of all surveyed investors see opportunity in health care, which is traditionally viewed as a more defensive sector.
- Energy. Two out of five investors see opportunity in energy this quarter amid the recent rally in crude oil.
- IT. This sector dropped two places from the number one spot last quarter as device production slows. Yet it remains a top choice, as investors may be seeking bargains.
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About the Survey
This wave of the survey was conducted from
The information provided herein is for general informational purposes only and should not be considered investment advice. Past performance does not guarantee future results.
|When it comes to the current market are you?|
Which of the following risks are you most concerned about
|China and US trade tensions||59%|
|Fed raising rates||38%|
|Gridlock in Washington||33%|
|Weakness in the tech sector||20%|
|Flattening yield curve||17%|
|Weakness in the housing market||13%|
|None of these||4%|
Over the next quarter, do you think volatility will...
|Stay the same||33%|
What grade would you give the current state
If you had to choose, would you say your trading strategy
|Buy the dip||79%|
|Sell the rally||21%|
|What industries do you think offer the most potential this quarter? (Top three)|
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