July 14, 2016

E*TRADE Study Indicates Investors Taking Market Moves in Stride


Several data points suggest that retail market views went south, but investors continue to identify opportunities

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 investor views of the market turned less positive:

  • Majority of investors remain bullish at 55 percent, down 6 percentage points from the previous quarter.
  • While most (69 percent) believe the market will either stay where it is or rise, significantly more investors believe the market will drop this quarter, up 11 percentage points to 31 percent.
  • Investors are most likely to choose "Dazed and Confused" as the movie title that best describes their views of the market this quarter, up 9 percent from Q2 and at the highest level in more than a year.
  • Significantly fewer investors believe the U.S. economy is healthy enough for additional rate hikes this quarter, down 8 percentage points to 33 percent.

"Brexit and the resulting market volatility cast a shadow on investors' views of the market," commented Mike Loewengart, VP of Investment Strategy at E*TRADE Financial. "That said, the majority remain bullish, and it's important to remember that within the context of a long-term investing plan, market disruptions can present opportunities for investors savvy enough to research and find them."

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

  • Utilities. Investor interest in the utilities sector rose sharply in Q3 up 14 percentage points to 31 percent. Investors seeking low risk and high dividends are drawn to the utilities sector, viewing it as a haven during periods of market volatility.
  • Consumer staples. Nearly one out of three investors this quarter believes the consumer staples sector offers potential, up 3 percentage points. Much like utilities, investors gravitate to this sector because they believe it can potentially be shielded from geopolitical events.

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 July 2 to July 11 of 2016 among an online U.S. sample of 949 self-directed active investors who manage at least $10,000 in an online brokerage account. The survey has a margin of error of ±3.18 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?
      Q3'16     Q2'16     Q1'16     Q4'15     Q3'15
Bullish     55%     61%     45%     50%     56%
Bearish     45%     39%     55%     50%     44%
                               
                               

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

      Q3'16     Q2'16     Q1'16     Q4'15     Q3'15
Dazed and Confused     40%     31%     33%     38%     29%
Easy Rider     17%     20%     14%     18%     20%
Pulp Fiction     12%     12%     13%     12%     14%
Singin' in the Rain     9%     13%     7%     9%     13%
Fear and Loathing in Las Vegas     8%     8%     11%     7%     8%
Raging Bull     5%     6%     4%     5%     6%
Jackass     5%     6%     7%     6%     6%
Apocalypse Now     4%     4%     9%     4%     5%
                   
                   
How do you predict the market will end this quarter?

(Question asked beginning in Q1'16)

      Q3'16     Q2'16     Q1'16
Rise     41%     59%     34%
Rise 20%     1%     1%     0%
Rise 15%     1%     2%     3%
Rise 10%     5%     9%     10%
Rise 5%     34%     47%     21%
Stay basically where it is     28%     21%     20%
Drop 5%     24%     16%     23%
Drop 10%     6%     4%     16%
Drop 15%     1%     0%     5%
Drop 20%     0%     0%     2%
Drop     31%     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)

      Q3'16     Q2'16     Q1'16
Agree (Top 2 Box)     33%     41%     47%
Strongly agree     6%     9%     7%
Somewhat agree     27%     32%     40%
Neither agree nor disagree     30%     29%     27%
Somewhat disagree     28%     20%     19%
Strongly disagree     9%     10%     7%
Disagree (Bottom 2 Box)     37%     30%     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)

      Q3'16     Q2'16     Q1'16     Q4'15     Q3'15
Large U.S. companies (large-cap)     47%     46%     42%     45%     56%
Mid-sized U.S. companies (mid-cap)     37%     43%     35%     36%     47%
Small U.S. companies (small-cap)     31%     34%     28%     32%     44%
Domestic bonds / debt     19%     14%     17%     18%     21%

International companies in developed markets (e.g., UK, Germany, Spain, Italy, Greece, France, Japan)

    15%     20%     19%     22%     27%

International companies in emerging markets (e.g., Brazil, Russia, India, China, Korea, Malaysia, Mexico)

    12%     15%     14%     15%     23%
International bonds / debt issued in developed markets     10%     13%     10%     11%     14%
International bonds / debt issued in emerging markets     9%     9%     10%     11%     15%
                               
                               

What industries do you think offer the most potential this quarter? (Top three)

      Q3'16     Q2'16     Q1'16     Q4'15     Q3'15
Health care     54%     56%     60%     57%     68%
Information technology     44%     51%     53%     45%     46%
Energy     43%     48%     38%     41%     48%
Utilities     31%     17%     18%     20%     16%
Consumer staples     30%     27%     30%     35%     23%
Telecommunication services     26%     24%     26%     22%     23%
Financials     25%     29%     32%     31%     34%
Industrials     16%     19%     16%     14%     14%
Materials     16%     14%     13%     14%     13%

Consumer discretionary

   

15%

   

17%

   

15%

   

20%

   

15%

                               
                               

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)

     

Q3'16

   

Q2'16

   

Q1'16

   

Q4'15

   

Q3'15

Individual stocks     63%     65%     63%     65%     67%
Equity mutual funds     57%     55%     52%     55%     57%
ETFs     44%     42%     40%     40%     45%
Money market funds or other cash-like instruments     40%     41%     42%     44%     45%
Fixed income mutual funds     38%     38%     38%     35%     36%
Bonds     38%     37%     31%     29%     28%
Investable properties     36%     36%     35%     36%     36%
CDs     22%     26%     27%     25%     21%
Commodities     17%     15%     17%     19%     15%
Treasury bills     12%     15%     14%     14%     14%
Foreign exchange (Forex or FX)     10%     8%     12%     12%     11%
Hedge funds     10%     9%     11%     11%     10%
Futures     9%     8%     12%     9%     9%
                               

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

 

 

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