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E*TRADE Study Reveals Retail Investors See Market Closing the Year on a High Note

Oct 16, 2017

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Many investors believe the second longest bull market in history may still have some fight left

NEW YORK--(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 that many investors believe the market still has room to run as we head into 2018:

  • The majority remain bullish at 63 percent, increasing three percentage points from Q3'17, and eight percentage points from Q4'16.
  • Two out of three investors believe the market will rise five percent or more this quarter, up five percentage points from Q3'17, and twelve percentage points from Q4'16.
  • Slightly less than three out of five investors believe the US economy is healthy enough for at least one additional rate hike this quarter, up one percentage point from the previous quarter, and six percentage points from Q4'16.

"If the market has illustrated anything in the past few months, it's that it can take some punches," commented Mike Loewengart, VP of Investment Strategy at E*TRADE Financial. "And despite historically high valuations, further potential Fed action, natural disasters, and significant geopolitical uncertainty at home and abroad, retail investors still appear to be eyeing opportunity as 2017 draws to a close."

The survey also explored retail investors' thoughts regarding potential investing opportunities for the fourth quarter. Mr. Loewengart offered insight into three areas with the most interest:

  • Information technology. Investors believe IT offers the most potential this quarter, rising one percentage point from the previous quarter. Despite two bouts of "tech wreck" in June and July, the sector has performed well over the year, so investors may be taking a longer view and seeing the recent dips as a buying opportunity.
  • Energy. Investor interest in energy remained steady from the previous quarter as stronger crude oil prices helped push the sector to recent highs.
  • International. After lagging for much of the past decade, interest in foreign assets continued to gain momentum as developed and emerging market equities have largely outpaced their US counterparts in 2017.

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 October 1 to October 12 of 2017 among an online US sample of 918 self-directed active investors who manage at least $10,000 in an online brokerage account. The survey has a margin of error of ±3.24 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 58 percent male and 42 percent female with an even distribution across online brokerages, geographic regions, and age bands.

Referenced Data

 
When it comes to the current market are you?
    Q4'17   Q3'17   Q2'17   Q1'17   Q4'16
Bullish   63%   60%   63%   65%   55%
Bearish   37%   40%   37%   35%   45%
     
How do you predict the market will end this quarter?
    Q4'17   Q3'17   Q2'17   Q1'17   Q4'16
Rise   66%   61%   55%   60%   54%
Rise 20%   2%   1%   0%   1%   1%
Rise 15%   6%   3%   4%   3%   2%
Rise 10%   16%   14%   13%   13%   8%
Rise 5%   42%   43%   38%   43%   44%
Stay basically where it is   17%   21%   23%   18%   22%
Drop 5%   11%   13%   16%   17%   19%
Drop 10%  

4%

  4%   4%   4%   4%
Drop 15%   2%   0%   2%   1%   1%
Drop 20%   0%   1%   0%   0%   0%
Drop   17%   18%   22%   22%   24%
 

Is the US economy healthy enough for the Fed to enact additional rate hikes this quarter?

    Q4'17   Q3'17   Q2'17   Q1'17   Q4'16
Agree (Top 2 Box)   59%   58%   62%   63%   53%
Strongly agree   17%   14%   16%   15%   12%
Somewhat agree   42%   44%   46%   48%   41%
Neither agree nor disagree   27%   24%   26%   23%   27%
Somewhat disagree   12%   15%   10%   12%   15%
Strongly disagree   2%   3%   2%   2%   5%
Disagree (Bottom 2 Box)   14%   18%   12%   14%   20%
 
The health of the markets outside the US appeals to me as an investor this quarter.
    Q4'17   Q3'17   Q2'17   Q1'17   Q4'16
Agree (Top 2 Box)   54%   53%   50%   43%   40%
Strongly agree   14%   14%   12%   10%   12%
Somewhat agree   40%   39%   38%   33%   28%
Neither agree nor disagree   29%   29%   29%   28%   28%
Somewhat disagree   13%   14%   16%   24%   25%
Strongly disagree   4%   4%   5%   5%   7%
Disagree (Bottom 2 Box)   17%   18%   21%   29%   32%
 
What industries do you think offer the most potential this quarter? (Top three)
    Q4'17   Q3'17   Q2'17   Q1'17   Q4'16
Information technology   46%   45%   46%   34%   50%
Energy   44%   46%   45%   53%   46%
Health care   43%   41%   39%   42%   45%
Financials   39%   43%   39%   46%   32%
Telecommunication services   27%   24%   24%   19%   27%
Utilities   22%   24%   23%   22%   25%
Industrials   22%   24%   28%   29%   17%
Materials   20%   20%   20%   20%   14%
Consumer staples   20%   20%   20%   18%   27%
Consumer discretionary   16%   16%   15%   16%   17%
                     

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 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, a Federal savings bank, Member FDIC, or its subsidiaries. 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

© 2017 E*TRADE Financial Corporation. All rights reserved.

E*TRADE Financial Corporation and Research Now are separate companies that are not affiliated. E*TRADE Financial Corporation engages Research Now to program, field, and tabulate the study.

About Research Now

Research Now Group, Inc. is a global leader in digital research data for better insights and business decisions. The company provides world-class research data solutions that enable better decisions and better results for its 3,000 market research, consulting, media, and corporate clients through access to over 11 million deeply profiled business professionals and consumers in more than 40 countries. Research Now operates globally with locations in the Americas, Europe, the Middle East, and Asia-Pacific, and is recognized as the quality, scale, and customer satisfaction leader in the market research industry. For more information, please go to www.researchnow.com.

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or
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Source: E*TRADE Financial Corporation

 

 

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