April 22, 2016

E*TRADE Study Reveals Retail Bulls Are Back

 

While the majority believe the market will end higher in Q2'16, most do not agree that additional rate hikes should occur this quarter

NEW YORK--(BUSINESS WIRE)-- E*TRADE Financial Corporation (NASDAQ: ETFC) today announced results from the most recent wave of StreetWise, E*TRADE's quarterly tracking study of experienced investors. Results indicate investors feel more positive about the market:

  • More than three out of five investors are bullish, up significantly from last quarter.
  • "Easy Rider" and "Singin' in the Rain" have increased significantly as movie titles that best describe investor views toward the market.
  • Nearly three out of five believe the market will end the second quarter up five percent or more.

While market views are more positive than last quarter, at the same time only a little more than two out of five investors agree that the U.S. economy is healthy enough for the Fed to enact additional rate hikes this quarter.

"Recent strong market performance at home has boosted investor optimism, but global instability — and its effects on our domestic economy — continues to weigh on investors' minds," commented Mike Loewengart, VP of Investment Strategy at E*TRADE Financial. "With many factors at play, including global central bank policies, volatile energy prices, and corporate earnings season, investors are wise to remain focused on long-term goals, even while considering potential opportunities."

Mr. Loewengart offered insight into the following opportunities that investors identified in the survey this quarter:

  • Domestic equities. Investors continue to favor equities this quarter, punctuated by the rebound in performance during Q1. Retail investor interest in U.S. large-, mid-, and small-cap companies rose across the board.
  • Bonds. Recent dovishness from the Federal Reserve had a positive impact on bond performance, and the data suggest retail investors are paying attention. Though individual stocks remain an overwhelming favorite, investor interest in bonds ticked up significantly from the prior quarter.
  • The energy sector. After a positive run in Q1, retail investor interest in energy is up 10 percentage points from Q1, now ranking third behind health care and information technology.

Visit E*TRADE's Newsroom for the full Q2'16 StreetWise study results.

E*TRADE helps investors balance today's needs with tomorrow's goals, through pioneering digital tools coupled with guidance online and from financial consultants. To learn more about E*TRADE's trading and investing platforms and tools, visit etrade.com.

For useful insight from E*TRADE and third-party investment professionals, follow the Company on Twitter, @ETRADE.

About the Survey

This wave of the survey was conducted from April 1 to April 8 of 2016 among an online U.S. sample of 907 self-directed active investors who manage at least $10,000 in an online brokerage account. The survey has a margin of error of ±3.25 percent at the 95 percent confidence level. It was fielded and administered by ResearchNow. 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 65 percent male and 35 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?
      Q2'16     Q1'16     Q4'15     Q3'15     Q2'15
Bullish     61%     45%     50%     56%     59%
Bearish     39%     55%     50%     44%     41%
 

If you had to pick a movie title that best describes how you personally feel about the market right now, which would it be?

      Q2'16     Q1'16     Q4'15     Q3'15     Q2'15
Dazed and Confused     31%     33%     38%     29%     25%
Easy Rider     20%     14%     18%     20%     26%
Singin' in the Rain     13%     7%     9%     13%     14%
Pulp Fiction     12%     13%     12%     14%     14%
Raging Bull     6%     4%     5%     6%     8%
Fear and Loathing in Las Vegas     8%     11%     7%     8%     6%
Jackass     6%     7%     6%     6%     5%
Apocalypse Now     4%     9%     4%     5%     3%
                               

How do you predict the market will end this quarter?
(Question asked beginning in Q1'16)

                             
      Q2'16     Q1'16                  
Rise     59%     34%                  
Rise 20%     1%     0%                  
Rise 15%     2%     3%                  
Rise 10%     9%     10%                  
Rise 5%     47%     21%                  
Stay basically where it is     21%     20%                  
Drop 5%     16%     23%                  
Drop 10%     4%     16%                  
Drop 15%     0%     5%                  
Drop 20%     0%     2%                  
Drop     20%     46%                  
                               

Is the U.S. economy healthy enough for the Fed to enact additional rate
hikes this quarter? (Question asked beginning in Q1 '16)

                             
      Q2'16     Q1'16                  
Agree (Top 2 Box)     41%     47%                  
Strongly agree     9%     7%                  
Somewhat agree     32%     40%                  
Neither agree nor disagree     29%     28%                  
Somewhat disagree     21%     19%                  
Strongly disagree     10%     7%                  
Disagree (Bottom 2 Box)     31%     26%                  
 
How interested are you in each of the following sectors, without taking into account the investment products which you can invest through? (% extremely or very interested)
      Q2'16     Q1'16     Q4'15     Q3'15     Q2'15
Large U.S. companies (large-cap)     46%     42%     45%     56%     72%
Mid-sized U.S. companies (mid-cap)     43%     35%     36%     47%     61%
Small U.S. companies (small-cap)     34%     28%     32%     44%     49%
International companies in developed markets (e.g. UK, Germany, Spain, Italy, Greece, France, Japan)     20%     19%     22%     27%     35%
International companies in emerging markets (e.g. Brazil, Russia, India, China, Korea, Malaysia, Mexico)     15%     14%     15%     23%     19%
Domestic bonds/debt     14%     17%     18%     21%     34%
International bonds/debt issued in developed markets     13%     10%     11%     14%     20%
International bonds/debt issued in emerging markets     9%     10%     11%     15%     17%
 
What industries do you think offer the most potential this quarter? (Top three)
      Q2'16     Q1'16     Q4'15     Q3'15     Q2'15
Health care     56%     60%     57%     68%     64%
Information technology     51%     53%     45%     46%     50%
Energy     48%     38%     41%     48%     46%
Financials     29%     32%     31%     34%     32%
Consumer staples     27%     30%     35%     23%     27%
Telecommunication services     24%     26%     22%     23%     19%
Utilities     17%     18%     20%     16%     15%
Consumer discretionary     17%     15%     20%     15%     19%
Industrials     19%     16%     14%     14%     16%
Materials     14%     13%     14%     13%     13%
 
If you could give one piece of advice to a friend or family member who is thinking of investing right now, would it be to get into... (Top four)
      Q2'16     Q1'16     Q4'15     Q3'15     Q2'15
Individual stocks     65%     63%     65%     67%     65%
Equity mutual funds     55%     52%     55%     57%     57%
ETFs     42%     40%     40%     45%     46%
Money market funds or other cash-like instruments     41%     42%     44%     45%     41%
Fixed Income mutual funds     38%     38%     35%     36%     36%
Investable properties     36%     35%     36%     36%     32%
Bonds     37%     31%     29%     28%     33%
CDs     26%     27%     25%     21%     22%
Commodities     15%     17%     19%     15%     16%
Treasury bills     15%     14%     14%     14%     14%
Foreign Exchange (Forex or FX)     8%     12%     12%     11%     11%
Hedge funds     9%     11%     11%     10%     10%
Futures     8%     12%     9%     9%     11%
Other (Specify)     7%     7%     6%     7%     6%

About E*TRADE Financial and Important Notices

E*TRADE Financial and its subsidiaries provide financial services, including online brokerage and banking products and services to retail customers. Specific business segments include Trading and Investing and Balance Sheet Management. Securities products and services, including stocks, bonds, mutual funds, options, and ETFs are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Managed Account Solutions are offered through E*TRADE Capital Management, LLC, an investment adviser registered with the Securities and Exchange Commission. Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries and affiliates. 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. ETFC-G

E*TRADE Financial, E*TRADE, and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation.

© 2016 E*TRADE Financial Corporation. All rights reserved.

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

About ResearchNow

ResearchNow, a leading digital data collection provider, powers market research insights. They enable companies to listen to and interact with the world's consumers and business professionals through online panels, as well as mobile, digital, and social media technologies. Their team operates in over 20 offices globally and is recognized as the market research industry's leader in client satisfaction. They foster a socially-responsible culture by empowering their employees to give back. To find out more or begin a conversation, visit www.researchnow.com.

 

E*TRADE Media Relations
Thayer Fox, 646-521-4418
thayer.fox@etrade.com
or
E*TRADE Investor Relations
Brett Goodman, 646-521-4406
brett.goodman@etrade.com

Source: E*TRADE Financial Corporation

 

 

News Provided by Acquire Media