TradeKing Investor Survey: Despite Near-Term Market Unrest, Investors Remain Confident But With a Wary Eye On Earnings Growth
Other Survey Highlights:
- Majority of respondents predict S&P 500 will close higher for 2014
- Putting their money where their mouth is, nearly half expect to increase their investment in equities
- Technology sector is investors’ top pick for next three months
FT. LAUDERDALE, Fla.--(BUSINESS WIRE)--Although independent investors take a dim view of the market’s potential in Q1, they appear confident the market will close higher than the previous year when all is said and done, according to the latest survey by TradeKing Group. What are the biggest potential threats to that happy outcome? Investors say limited earnings growth and unemployment rate concerns have the greatest potential to spoil the market’s upward trend.
The in-house survey of 380 independent investors was conducted January 27 – February 1, 2014 by TradeKing Group, Inc. View INFOGRAPHIC at https://www.tradeking.com/infographic-center/tradeking-january-2014-survey-infographic
Bullish Sentiment Recedes Sharply for Q1
Bullish sentiment for the first quarter of the year dropped 16 points over TradeKing’s October investor survey, falling from a six-year high of 48% down to 32%. Bearish sentiment rose 14 points from only 8% in October to 22% in January.
Longer-Term Confidence in Equities Market Remains Firm
Despite near-term wariness about the market, a full 87% of respondents said they plan to either hold steady (42%) or grow (45%) their investments in the equity markets for 2014. When asked to define their investment timeline, 42% said “more than five years,” 36% said between “two-five years,” and 22% said “less than 12 months.”
Earnings Growth Remains #1 Trade Trigger, But Tapering Effect on Many Minds
Investors surveyed chose company quarterly earnings as their top trading trigger for the first quarter of 2014. Interest rates came in second while unemployment rates and consumer spending tied for third.
When asked which sectors offered the most potential over the next three months, the majority of investors selected technology (53%), followed by healthcare and energy, each selected by 43% of the respondents.
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