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 that investors
are eager to participate in the market this quarter and are keenly
interested in U.S. large-cap equities.
Concerning market sentiment, 66 percent bullish:
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66 percent are bullish, up seven percentage points from last quarter
and at the highest level since Q1 2014.
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47 percent — and 60 percent of active investors — agree that the drop
in oil prices and therefore lower gas prices result in more disposable
income for them to invest in the markets.
Concerning assets, individual stocks most preferred:
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Individual stocks are the most preferred asset class in which to
invest, at 68 percent, up 6 percentage points from last quarter and at
the highest level since Q1 2014, while investors are most comfortable
investing in large-cap U.S. equities, at 61 percent — the highest of
any category.
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Equity mutual funds are the second-most preferred asset class, at 60
percent, up 5 percentage points from last quarter.
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Only 29 percent of investors prefer investing in bonds, down 7
percentage points from last quarter and the lowest level since Q1 2014.
Concerning sectors, health care most favorable:
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Health care remains the most preferred sector, with 56 percent of
investors preferring it, up 1 percentage point from last quarter.
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Information technology, with 44 percent of investors preferring it,
replaces energy as the second most preferred. Energy drops 14
percentage points to 35 percent of investors preferring it.
“Investors clearly sense opportunity in the market,” said George
Fischer, VP, Trading, Margin Lending and Cash Management at E*TRADE
Financial. “But spotting potential opportunities is only half the
battle. The next step is using the right tools to move from ideation to
execution.”
For those investors interested in finding the right investments in
today’s market environment, Mr. Fischer offered the following:
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Define the universe. Before searching for new positions, form a
comprehensive picture of what the right asset looks like for your
portfolio. For example, if your focus is large-cap U.S. equities,
screeners can help focus your universe by a host of key
characteristics, including dividend yield, P/E ratio and industry. In
fact, experienced investors rate screeners, which you can find on etrade.com,
as the most useful tool when looking for investments.
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Establish your target allocation. Evaluate the potential
suitability, risk and return of a new position, making sure it fits
within your larger investment goals and will not overexpose your
portfolio to any one sector or asset class. E*TRADE offers both risk
and portfolio analyzer tools to help determine proper allocation.
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Pick your entry. While it is impossible to time the market,
there are signals that help evaluate when to execute. A combination of
fundamental analysis, like research and earnings reports, and
technical analysis, like charting, can help you better understand the
cyclicality of how a sector or stock interacts with the market and
when it may be an appropriate time to engage.
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Manage the position over time. Review and rebalance your
portfolio, mapping it back to your target allocation every six months,
or as market valuations change. The value and class of the assets in
your portfolio will change as the companies that underlie them evolve.
E*TRADE empowers smarter investing by balancing 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 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 E*TRADE Financial
E*TRADE Financial and its subsidiaries provide financial services
including online brokerage and related banking products and services to
retail investors. Specific business segments include Trading and
Investing and Balance Sheet Management. Securities products and
services, including stocks, bonds and mutual funds, 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.
ETFC-G
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.
About the Survey
This wave of the survey was conducted from January 8 to January 16 of
2015 among an online U.S. sample of 945 self-directed active investors
who manage at least $10,000 in an online brokerage account. The survey
has a margin of error of ±3.2 percent at the 95 percent confidence
level. It was fielded and administered by ResearchNow. The panel is 65
percent male and 35 percent female with an even distribution across
online brokerages, geographic regions and age bands.
Important Notices
E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or
registered trademarks of E*TRADE Financial Corporation.
© 2015 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.
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Copyright Business Wire 2015