TradeKing Survey: Optimism on the Rise as Investors Anticipate Greater Opportunity in Equities Market for 2013
For the first time since November 2007, investors surveyed by online broker dealer TradeKing moved off their predominantly “neutral” position on the stock market and indicated a more “bullish” outlook for the quarter and year ahead.
In the survey of 250 self-directed investors, “bullish” sentiment was up 21 points from last quarter (October 2012), reaching a rare high of 45 percent. “Neutral” positions were down 16 points from last quarter to 37 percent, and “bearish” sentiment was down five points to 18 percent.
Just as TradeKing survey respondents predicted this same time last year, investors anticipate the S&P 500 to finish 2013 up by more than five percent. (The S&P 500 finished up 13.4 percent for 2012.)
To view the survey infographic, visit http://marketing.tradeking.com/survey/january2013
The in-house survey was conducted January 30-February 7, 2013 by TradeKing Group, Inc., via email to 8,000+ clients, with an estimated 95 percent confidence level.
Investors See Opportunity Again in U.S. Equities...
When asked to predict the level of their U.S. equities exposure in 2013 as compared with 2012, 51 percent said “somewhat or significantly greater,” while 37 percent said “the same” and 12 percent said “somewhat or significantly less.”
Seeking to assess if “buy and hold” investing is a thing of the past, even as the majority of investors increase their position in the stock market, survey results showed investment timelines varied greatly. Results were divided into nearly even thirds across more active traders looking for returns in “less than 12 months,” those investing for “2-5 years,” and the long-term investors willing to wait “greater than 5 years.”
...But Want the U.S. Government to Get its Fiscal House in Order
The survey also indicted that current U.S. fiscal issues continue to weigh on investors minds. When asked which fiscal issue concerned them the most, 60 percent honed in on the lack of an approved federal budget, 25 percent said the “U.S. debt ceiling,” and 15 percent said the automatic budget cuts known as the “sequester.”
The top three trade triggers investors said they would be watching this quarter were 1) quarterly earnings, 2) U.S. consumer spending and 3) U.S. unemployment claims.
Apple (AAPL) Descends to Earth For Good?
Investors were also asked to weigh in on the recent, dramatic drop in stock price for Apple, a persistent stock darling. In response to this question: “How do you interpret the recent large drop in stock price for Apple (NASDAQ: AAPL)?”, 31 percent said the stock is still a good value despite the drop, 15 percent said the stock is overvalued and has further to fall, and 40 percent said they believed recent share price adjustments marked the beginning of a new reality for AAPL as a “mere mortal” stock.
About TradeKing Group, Inc.
TradeKing Group, Inc. (www.tradeking.com) consists of companies that provide online brokerage services, social communities for investors, investor education and more. Its subsidiary, TradeKing, is a nationally licensed online broker/dealer dedicated to empowering the independent, self- directed investor. It offers simple, low flat fees ($4.95 per trade for both equity and option trades with $0.65 per options contract).1 The TradeKing platform features powerful online equity, options, ETF, mutual fund and fixed-income trading tools accompanied by a rich set of news, research and analysis capabilities.
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Tier One Partners
Sue Parente, 781-642-7788