E*TRADE Financial Corporation (NASDAQ: ETFC) today announced results from the most recent wave of StreetWise, the E*TRADE quarterly tracking study of experienced investors. Results indicate increasingly gloomy investor views:
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Investors become decidedly more pessimistic, believing we are in a bear market amid lagging economy and recessionary environment (Graphic: Business Wire)
“Against this unprecedented backdrop, it’s critical not to lose sight of long-term financial goals—while the duration of the pandemic remains unknown, it will eventually pass,” said Mike Loewengart, Managing Director of Investment Strategy at E*TRADE Financial. “As the real effects of COVID-19 magnify and the media is awash with dramatic predictions, investors can get spooked and make rash decisions. History has shown that those who avoid trying to time the market tend to emerge in a stronger position. For investors who need income in the near term, or who may be closer to retirement, now is a good time to re-evaluate your risk tolerance and ensure your portfolio is aligned with your circumstance.”
The survey explored investor views on sector opportunities for the second quarter of 2020:
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 8 of 2020 among an online US sample of 937 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 and Important Notices
E*TRADE Financial 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 FINRA/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 trademarks or registered trademarks of E*TRADE Financial Corporation. ETFC-G
© 2020 E*TRADE Financial Corporation. All rights reserved.
E*TRADE Financial Corporation 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
What stage of the business cycle do you believe we are currently in? |
||
|
Total |
|
|
Q2'20 |
Q1’20 |
Peak |
13% |
56% |
Expansion |
9% |
27% |
Recession |
53% |
13% |
Trough |
21% |
2% |
Recovery |
4% |
2% |
When it comes to the current market, are you? |
|||||
|
Total |
||||
|
Q2'20 |
Q1’20 |
Q4’19 |
Q3’19 |
Q2’19 |
Bullish |
38% |
61% |
50% |
61% |
58% |
Bearish |
62% |
39% |
50% |
39% |
42% |
Where do you predict the market will end this quarter? |
||
|
Q2'20 |
Q1'20 |
Drop (Net) |
60% |
25% |
Drop - 20% |
19% |
1% |
Drop - 15% |
16% |
1% |
Drop - 10% |
16% |
7% |
Drop - 5% |
9% |
16% |
Stay where it is |
9% |
19% |
Rise 5% |
13% |
37% |
Rise 10% |
9% |
13% |
Rise 15% |
4% |
4% |
Rise 20% |
5% |
2% |
Rise (Net) |
31% |
56% |
If you had to pick a movie title that best describes how you personally feel about the market this quarter, which would it be? |
||
|
Total |
|
|
Q2'20 |
Q1’20 |
Dazed and Confused |
31% |
17% |
Apocalypse Now |
24% |
3% |
Fear and Loathing in Las Vegas |
11% |
5% |
Raging Bull |
7% |
22% |
Pulp Fiction |
7% |
8% |
Jackass |
7% |
4% |
Easy Rider |
7% |
22% |
Singin' in the Rain |
6% |
19% |
Which of the following risks are you most concerned about when it comes to your portfolio? (Top 2) |
||
|
Total |
|
|
Q2'20 |
Q1’20 |
Recession |
54% |
30% |
Coronavirus and other pandemic concerns |
44% |
n/a |
Market volatility |
27% |
23% |
Economic weakness abroad |
16% |
20% |
US trade tensions |
12% |
44% |
Gridlock in Washington |
12% |
23% |
Fed monetary policy |
10% |
16% |
Softening job market |
8% |
5% |
Flattening/inverted yield curve |
7% |
11% |
Low inflation |
3% |
5% |
Other |
2% |
8% |
None of these |
2% |
4% |
What industries do you think offer the most potential this quarter? (Top three) |
|||||
|
Q2'20 |
Q1’20 |
Q4’19 |
Q3’19 |
Q2’19 |
Health care |
58% |
44% |
43% |
48% |
48% |
Consumer staples |
42% |
19% |
30% |
25% |
22% |
Information technology |
38% |
46% |
47% |
47% |
44% |
Utilities |
28% |
21% |
32% |
26% |
27% |
Energy |
26% |
45% |
41% |
41% |
48% |
Communication services |
26% |
20% |
21% |
23% |
22% |
Financials |
21% |
33% |
31% |
35% |
34% |
Real estate |
18% |
27% |
- |
- |
- |
Materials |
18% |
16% |
17% |
16% |
19% |
Industrials |
14% |
17% |
18% |
21% |
22% |
Consumer discretionary |
11% |
13% |
19% |
18% |
15% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200408005698/en/
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