Investor Sentiment Varies Significantly across Age Groups
Majority still bullish, yet data suggest investors are taking a more defensive stance against international turmoil
- Bullish sentiment is much stronger among pre-retirees, age 55 to 64, who typically have a more seasoned view of the markets, than among investors under 35 (72 percent vs. 55 percent).
- Bullish sentiment increased from last quarter across both age brackets — up 5 percent (from 67 percent) for pre-retirees and 9 percent (from 46 percent) for investors under 35.
- Investors under 35 are significantly less likely to recommend investing in individual stocks than pre-retirees (54 percent vs. 74 percent).
- When choosing what movie title best describes how they feel about the market right now, pre-retirees are most likely to choose ‘Easy Rider' (34 percent), whereas investors under 35 choose ‘Dazed and Confused' (24 percent).
These divisions noted, investors are united on one growing trend: mounting concern over turmoil abroad. The number of investors who state they are actively managing their portfolios against this risk increased significantly and steadily throughout 2014, from 9 percent in Q1 to 19 percent in Q2 to 24 percent in Q3.
"Volatility can create new investment opportunities in developed and emerging markets," said
- Adopt a core/explore approach. This construction divides your investment portfolio into two parts. The core portion typically ranges from 60 to 90 percent of your portfolio and is held in low-cost equity and bond investments. The explore portion — usually 10 to 40 percent of your total portfolio — can be used to pursue greater returns by adding or overweighting specific sectors.
- Take advantage of specialization. Individual investors have access to more specialized investment vehicles than ever before. Whereas they previously had access only to broad-based international equity mutual funds, today investors can explore investment opportunities in more targeted sectors through country or region specific ETFs.
- Don't lose track of your goals. If you have created a well-diversified portfolio that is mapped to your goals, stick to your plan while thoughtfully adjusting for volatility or risks. To learn more about each of these tips, visit E*TRADE's Investing Insights section on etrade.com.
E*TRADE is a partner in helping investors balance today's needs with tomorrow's goals, through access to curated content and insights with actionable tools — complemented by professional guidance — online and from seasoned financial consultants. To learn more about E*TRADE's trading platforms and tools, visit etrade.com.
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About the Survey
This wave of the survey was conducted from
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