E*TRADE Financial Corporation announced results from the most recent wave of StreetWise, the E*TRADE quarterly tracking study of experienced investors. Results indicate investors are bullish on the market but have a wary economic outlook:
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“It’s encouraging to see bullish sentiment come charging back amid Nasdaq highs and consecutive up days in the market”
- Bullish sentiment returns. Half of surveyed investors (51%) are bullish, rising 13 percentage points since last quarter.
- Investors are more likely to believe the market will rise. Over half of investors (51%) believe the market will rise, skyrocketing 20 percentage points this quarter.
- But volatility will persist. More than half of investors (56%) believe volatility will continue, gaining nine percentage points since last quarter.
- And investors expect a long road to recovery. More than half (54%) believe it will take more than one year to recover from the pandemic, and just one out of five investors (23%) would give the economy an “A” or “B” grade.
“It’s encouraging to see bullish sentiment come charging back amid Nasdaq highs and consecutive up days in the market,” said Mike Loewengart, Managing Director of Investment Strategy at E*TRADE Financial. “That said, it’s important to remember that the economy is not the market and the market is not the economy. While there are signs of optimism—consecutive declines in weekly jobless claims, solid housing data, and strength in retail sales—the US economy remains in fragile territory. Fears of a second wave are becoming a reality as virus cases rise in the Sunbelt, rolling back reopenings and stalling pockets of the economy yet again. While stimulus measures have helped Americans and Chairman Powell is committed to deploying his full arsenal, if there is anything 2020 has taught us so far it’s to expect the unexpected.”
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