Active Traders Express Optimism on Market Outlook
The majority of active traders believe that the market will close higher in both 2012 and 2013 despite expressing concerns going into last week's Presidential election, according to data released today by Charles Schwab.
The latest Charles Schwab Active Trader Sentiment Survey polled participants in the Schwab Trader Day virtual event on October 20, 2012. While 24 percent of participating traders were concerned about the November 6th election and 55 percent give the government a grade of D or F for their pursuit of policies that encourage investing, they say their long-term outlook remains positive. Nearly 60 percent of traders think that the stock market will close higher in 2012, and 54 percent say the same about their outlook for 2013.
“Traders have real concerns about a broad range of issues that are impacting the national and international markets. They also believe that there are better times ahead in the coming months,” said Kelli Keough, Senior Vice President at Charles Schwab. “We're encouraged to see that this positive sentiment is starting to be reflected in their actions – nearly a quarter of traders surveyed say they have reduced the cash allocation in their portfolio in the past three months.”
Other key findings of the survey include:
- The fiscal cliff tops the list of trader concerns. Twenty-seven percent of traders say that the fiscal cliff is their top issue of concern for the market. While the election followed at 24 percent, unemployment is the top concern for 16 percent of traders. Low on the list of top concerns are interest rates (3 percent), the housing market (3 percent) and energy prices (2 percent).
- Traders see upside in sectors. Traders are most bullish on the energy (20 percent), healthcare (17 percent) and technology sectors (16 percent). Financials and consumer discretionary sectors are next on the list of where traders see opportunities.
- International investing remains attractive. A third of traders say they see better growth opportunities outside the U.S., and nearly 80 percent are interested in global investing.
Schwab provides active traders with cutting-edge trading platforms, free seminars and workshops, online education resources and 24-hour access to experienced trading specialists, now with no minimum trade requirements. For more information, please visit www.schwab.com/AT or call 800-435-9050.
Data from the Charles Schwab Active Trader Sentiment Survey were derived from responses of 325 virtual attendees of the Schwab Trader Day, collected on October 20, 2012, and analyzed by Directive Analytics.
About the traders surveyed
Attendees of the Schwab Trader Day virtual event in October were from 48 states across the country and 54 percent of attendees were over the age of 55. Half of respondents indicated that they actively trade 20 percent or less of their portfolio. Thirty-eight percent identified themselves as options traders and 62 percent said they owned non-U.S. equities.
International investments are subject to additional risks such as currency fluctuation, political instability and the potential for illiquid markets.
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with more than 300 offices and 8.7 million active brokerage accounts, 1.6 million corporate retirement plan participants, 851,000 banking accounts, and $1.9 trillion in client assets. The company was ranked 'Highest in Investor Satisfaction With Self-Directed Services' in the 2012 US Self-Directed Investor Satisfaction StudySM from J.D. Power and Associates. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services division. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides trust and custody services, banking and lending services and products. Investment products offered by Charles Schwab & Co., Inc. are not insured by the FDIC, are not deposits or obligations of Charles Schwab Bank, and are subject to investment risk, including the possible loss of principal invested. More information is available at www.schwab.com and www.aboutschwab.com.