E*TRADE Study Reveals Bullish Sentiment Hits Pre-Pandemic Levels as Positive Views on the Economy Improve Significantly
E*TRADE Financial Holdings, LLC today announced results from the most recent wave of StreetWise, the E*TRADE quarterly tracking study of experienced investors. Results indicate investor views across the market and the economy improved:
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(Graphic: Business Wire)
“Despite investor unease as interest rates shot higher over the last quarter, optimism grew as the market hit new all-time highs, vaccines increased, stimulus measures continued, and earnings estimates are high,” said Mike Loewengart, Managing Director of Investment Strategy at E*TRADE Financial. “But while the market is running hot, investors should keep a watchful eye on their portfolios to see if now is a good time to rebalance to ensure allocations remain mapped to their own goals and risk tolerances. Amid the increasingly maturing recovery we’ve seen these past few months, diversification is critical to ensure one’s portfolio continues to benefit as disparate parts of the market pick up steam or cool off.”
The survey explored investor views on sector opportunities for the second quarter of 2021:
Health care. The sector remains number one in the eyes of investors, but interest decreased significantly—down 16 percentage points from last quarter—as vaccination accelerates. IT. Despite interest rate headwinds, the tech sector remains a perennial retail fan favorite, with over two out of five (41%) seeing opportunity in the sector. Energy. For the second consecutive quarter, the energy sector ranked third in investor interest (34%), as economies around the globe continue to reopen and recover.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 April 1 to April 12 of 2021 among an online US sample of 957 self-directed active investors who manage at least $10,000 in an online brokerage account. The survey has a margin of error of ±3.20 percent at the 95 percent confidence level. It was fielded and administered by Dynata. 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 60% male and 40% female, with an even distribution across online brokerages, geographic regions, and age bands.
About E*TRADE Financial Holdings, LLC and Important Notices
E*TRADE Financial Holdings, LLC 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 SIPC). Commodity futures and options on 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, and RIA custody solutions are offered by E*TRADE Savings Bank, both of which are national federal savings banks (Members FDIC). 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 registered trademarks of E*TRADE Financial Holdings, LLC. ETFC-G
© 2021 E*TRADE Financial Holdings, LLC, a business of Morgan Stanley. All rights reserved.
E*TRADE Financial engages Dynata to program, field, and tabulate the study. Dynata provides digital research data and has locations in the Americas, Europe, the Middle East and Asia-Pacific. For more information, please go to www.dynata.com.
Referenced Data
When it comes to the current market, are you?
Q2'21
Q1'21
Q4'20
Q3'20
Q2'20
Q1'20
Bullish
61%
57%
52%
51%
38%
61%
Bearish
39%
43%
48%
49%
62%
39%
What grade would you give the current state of the U.S. economy right now?
Q2'21
Q1'21
Top 2 Box
46%
31%
A
14%
5%
B
32%
26%
C
38%
43%
D
12%
20%
F
4%
6%
Which of the following risks are you most concerned about when it comes to your portfolio? (Top Two)
Q2'21
Q1'21
Market volatility
26%
23%
Recession
25%
32%
US trade tensions
24%
15%
New presidential administration
23%
25%
Coronavirus and other pandemic concerns
22%
30%
Economic weakness abroad
21%
14%
Fed monetary policy
15%
12%
Inflation
14%
7%
Gridlock in Washington
14%
20%
Steepening yield curve
6%
6%
Softening job market
3%
7%
None of these
2%
3%
Other
1%
2%
Do you think current stock valuations would suggest that right now we are…
Q2'21
Q1'21
Top 2 Box
69%
66%
Fully in a market bubble
22%
15%
In somewhat of a market bubble
47%
51%
Approaching a market bubble
22%
26%
Not close to a market bubble
9%
8%
What industries do you think offer the most potential this quarter?
(Top Three)
Q2'21
Q1'21
Health care
43%
59%
Information technology
41%
46%
Energy
34%
30%
Financials
29%
27%
Real estate
27%
25%
Consumer staples
26%
26%
Industrials
21%
15%
Communication services
21%
24%
Consumer discretionary
20%
15%
Utilities
19%
20%
Materials
19%
15%
ETFC
View source version on businesswire.com: https://www.businesswire.com/news/home/20210412005872/en/