Bullish Sentiment Hits Pre-Pandemic Levels

Tue, 13 April 2021  |  investing pandemic 

E*TRADE Financial Holdings, LLC today announced results from the most recent wave of StreetWise, the E*TRADE quarterly tracking study of experienced investors. Results indicate investor views across the market and the economy improved:

“Despite investor unease as interest rates shot higher over the last quarter, optimism grew as the market hit new all-time highs, vaccines increased, stimulus measures continued, and earnings estimates are high,” said Mike Loewengart, Managing Director of Investment Strategy at E*TRADE Financial. “But while the market is running hot, investors should keep a watchful eye on their portfolios to see if now is a good time to rebalance to ensure allocations remain mapped to their own goals and risk tolerances. Amid the increasingly maturing recovery we’ve seen these past few months, diversification is critical to ensure one’s portfolio continues to benefit as disparate parts of the market pick up steam or cool off.”

• Bullish sentiment rose. Bullish sentiment increased 4 percentage points since last quarter to 61%—matching pre-pandemic highs.
• And more believe the economy is in better shape. Nearly half of investors (46%) would give the US economy an A or B grade, increasing 15 percentage points from Q1.
• COVID concerns retreat while volatility concerns increase. Concern around coronavirus-related investment risk dropped 8 percentage points to 22%. Market volatility concerns increased 3 percentage points and now rank as the top risk to investor portfolios, at 26%.
• Yet the majority of investors believe we’re in a market bubble. Almost three out of four (69%) investors think we are fully or somewhat in a market bubble, up 3 percentage points from last quarter.

The survey explored investor views on sector opportunities for the second quarter of 2021:

• Health care. The sector remains number one in the eyes of investors, but interest decreased significantly—down 16 percentage points from last quarter—as vaccination accelerates.
• IT. Despite interest rate headwinds, the tech sector remains a perennial retail fan favorite, with over two out of five (41%) seeing opportunity in the sector.
• Energy. For the second consecutive quarter, the energy sector ranked third in investor interest (34%), as economies around the globe continue to reopen and recover.

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.

Referenced Data