Active Investors Plan to Capitalize on Market Volatility; Bullish Long Term

Poll of 2,200 Fidelity Active Investors Reveals:

  • If a market correction of 5 percent occurs, 57 percent would find bargains and invest more, while only 6 percent would take money out of the market
  • Four in 10 believe S&P 500® Index will grow 5 percent or more by year end, but two in 10 predict decline of 5 percent or more

BOSTON--()--According to a Fidelity Investments® poll taken on October 9—a day when the S&P 500 Index was down 2 percent—many active investors, who make several trades a month, are in a resilient frame of mind when it comes to talk of a market correction, with most planning to take advantage of bargains if the markets continue downward. The respondents are most bullish about the healthcare and technology sectors and those with investments in ETFs and options plan to use them more.

The poll involved more than 5,000 in-person and online attendees of Fidelity’s San Francisco Traders’ Summit. On average, 2,239 active investors answered each question.

“Fidelity Traders’ Summits attract highly engaged investors, so it’s interesting to learn about their allocation plans, with many expressing enthusiasm for the buying opportunities that volatility brings,” said Ram Subramaniam, president of Fidelity’s retail brokerage business, which has more than 15 million accounts. “These summits enable us to gain and share insights based on real-time views of leading edge investors who are helping shape macro trends, informing our research and market perspective. For instance, 45 percent believe the healthcare sector has the most upside over the next 12 months, while 32 percent favor investments in the technology sector.”

Investment Choices Revealed

The Traders’ Summit Poll found that when active investors are given the choice of where they would put their next investing dollar, 75 percent choose equities, 12 percent choose cash, 7 percent real estate and 6 percent bonds. And, over the next 12 months:

  • Of the active investors currently using ETFs, 55 percent plan to increase those investments, 41 percent will keep them constant and 5 percent will decrease their ETF investments.
  • Of the active investors currently using options, 57 percent plan to increase those investments, 37 percent will keep them constant and 7 percent will decrease their options investments.

Where Do Active Investors Get Their Trade Ideas (And Where Can Less Active Investors Turn)?

At least for active investors, traditional news is still going strong: four in ten investors (41 percent) turn most to business and financial news outlets for their trading ideas versus just 3 percent who rely on new media, such as blogs and Twitter. The next top two sources for trading ideas are newsletters/investment clubs (25 percent) and the investors’ own daily observations (14 percent). When asked how long they research their stock investing ideas before making a purchase, half (49 percent) of the investors spend a few days, 34 percent spend a few weeks and 17 percent typically research and purchase stocks on the same day.

For investors interested in learning how to find and research sectors, ETFs, options and stocks that best fit their financial goals, Fidelity’s Learning Center has a curriculum of written and video tutorials about Fidelity’s research tools. To watch highlights of a technology investing panel discussion from the Oct. 9 San Francisco Traders’ Summit, visit the Fidelity Viewpoint®Potential Investing Ideas for the Future.” To read about investing strategies for a volatile market, visit the Viewpoint “Six Strategies for Volatile Markets.”

About the Fidelity Traders’ Summit Poll

The poll was taken during a Fidelity Traders’ Summit in San Francisco, CA, on Oct. 9, 2014 that included more than 5,000 in-person and webcast attendees who are Fidelity customers. Between 828 and 4,031 attendees responded to each poll question for an average of 2,239.

About Fidelity Investments

Fidelity’s goal is to make financial expertise broadly accessible and effective in helping people live the lives they want. With assets under administration of $4.9 trillion, including managed assets of $2.0 trillion as of September 30, 2014, we focus on meeting the unique needs of a diverse set of customers: helping 23 million people investing their own life savings, 20,000 businesses to manage their employee benefit programs, as well as providing 10,000 advisors and brokers with technology solutions to invest their own clients’ money. Privately held for nearly 70 years, Fidelity employs 41,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit www.fidelity.com.

Investing involves risk, including the risk of loss.

Past performance is no guarantee of future results.

Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Prior to trading options, please read Characteristics and Risks of Standardized Options, and call 800-343-3548 to be approved for options trading. Supporting documentation for any claims, if applicable, will be furnished upon request.

ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.

The S&P 500 Index is a market capitalization–weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.

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The third party trademarks appearing herein are the property of their respective owners.

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Contacts

CONTACTS:
Corporate Communications, (617) 563-5800
Follow us on Twitter @FidelityNews
or
Robert Beauregard, (401) 292-7440
Robert.Beauregard@FMR.com
or
Joseph Madden, (401) 292-6330
Joseph.Madden@FMR.com

Contacts

CONTACTS:
Corporate Communications, (617) 563-5800
Follow us on Twitter @FidelityNews
or
Robert Beauregard, (401) 292-7440
Robert.Beauregard@FMR.com
or
Joseph Madden, (401) 292-6330
Joseph.Madden@FMR.com