E*TRADE Study Reveals Varying Investing Mindsets Amid New Administration
Retail investors express divergent views on how to deploy capital under the new administration
- Nearly seven out of ten conservatives surveyed believe the new administration will benefit their retirement portfolio, compared to only three out of ten liberals.
- 64% of liberals plan to make changes to their portfolio in response to President Trump's policies, compared to 57% of conservatives.
- Three out of five investors surveyed are most excited about personal tax cuts during the Trump presidency. However, when looking at political orientation, liberals (64%) show greater excitement levels for personal tax cuts than conservatives (58%).
- The data suggest liberals may be trying to find a silver lining in President Trump's infrastructure plans, with nearly seven out of ten excited about this initiative, compared to about three out of ten conservatives.
"We know that politics and passion go hand in hand, and are seeing that these factors are influencing investing decisions," said
- Investors foresee a Trump bump in their retirement portfolio. More than half of all investors surveyed believe the new administration will benefit their retirement portfolio. Boomers (56%) and Millennials (55%) over-index in their optimism regarding the Trump bump, while Gen X investors (50%) are split down the middle.
- For younger investors, it's show me the money. Nearly seven out of ten Millennial investors are most excited about personal tax cuts under the new administration, compared to three out of five Gen Xers, and just more than half of all Boomers.
- Boomers are staying put. Nearly three out of five Boomers—the highest out of any age demographic—plan to make no changes to their portfolio this quarter in response to the President's policies, perhaps taking to heart that investing growth tends to transcend any individual presidency.
Visit E*TRADE's Newsroom for the full Q1'17 StreetWise study results.
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About the Survey
This wave of the survey was conducted from
1. What Trump administration economic proposals are you most excited about? (Question asked beginning in Q1'17; Choose top two)
|Personal tax cuts||60%||67%||60%||54%||58%||64%|
|Spending more on infrastructure||47%||49%||44%||52%||34%||69%|
|Cutting back on government regulations||46%||44%||49%||46%||57%||29%|
|Business tax cuts||26%||24%||27%||28%||32%||18%|
2. Which of the following strategies are you planning to or have you deployed as
|Move out of current positions and in to cash||10%||15%||10%||7%||8%||15%|
|Move out of cash and in to new positions||20%||29%||21%||9%||23%||14%|
|Change the allocations in my portfolio||30%||33%||30%||26%||26%||35%|
|Make no changes to my portfolio||40%||23%||39%||57%||43%||35%|
3. When it comes to investing for retirement, do you think the Trump Presidency… (Question asked beginning in Q1'17; Choose three)
|Benefit (Top 2 Box)||54%||55%||50%||56%||68%||30%|
|Will greatly benefit your retirement portfolio||11%||10%||12%||11%||15%||4%|
|Will somewhat benefit your retirement portfolio||43%||45%||38%||45%||53%||26%|
|Will have no impact on your retirement portfolio||21%||21%||22%||21%||21%||22%|
|Will somewhat hurt your retirement portfolio||18%||17%||19%||19%||8%||35%|
|Will greatly hurt your retirement portfolio||7%||7%||9%||4%||3%||13%|
|Will hurt your retirement portfolio (Bottom 2 Box)||25%||24%||28%||23%||11%||48%|
"Millennials" defined as age 25-34 // "Gen X" defined as age 35-54 // "Baby Boomers" defined as age 55+
The information provided herein is for general informational purposes only and should not be considered investment advice. Past performance does not guarantee future results. ETFC-G
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