May 5, 2010
BOCA RATON, Fla. – May 5, 2010 – Seventy-one percent of online investors said they believe the S&P 500 index will rise between 5-20 percent by year-end, according to a late April survey of more than 500 investors conducted by online broker TradeKing (www.tradeking.com). This figure is up more than 5 percent since January 2010.
While 40 percent of total respondents described themselves as taking a “neutral” position on the market for the next three months, overall bearishness was only 17 percent, down three points from January, representing a new record low since the survey’s inception in October of 2007. Both near- and long-term bullishness appeared strong.
In line with their bullish expectations, 26 percent of investors surveyed indicate they plan to use their 2010 tax refund to further invest in the stock market, compared with only 18 percent who said they would use it to help pay down personal debt and 17 percent who plan to add it to their savings. Thirty-three percent of those responding did not believe they would be eligible for a tax refund this year.
“As we compare the results of this late April survey with those from January, we see investors sticking to their bullish guns,” said Don Montanaro, Chairman and CEO of TradeKing. “As more signs of economic improvement emerge, investors seem to be getting more comfortable with the idea that the market will finish the year in a positive way as long as interest rates remain low and unemployment levels continue to stabilize.”
Investors Keep Eyes on Interest Rates and Unemployment as Key Trading Indicators; Pick Top Sectors for Success over Next Three Months
Among those surveyed, 45 percent listed interest rates and U.S. unemployment claims as their top trade triggers to watch closely over the next three months. Quarterly earnings came in second as the most critical trade triggers to watch with 37 percent, while the U.S. housing market and consumer spending tied for third at 36 percent.
When asked to pick the best sectors for the next three months from a “long” position, respondents listed energy, technology and commodities as their top three. The finance sector took top spot as having the most potential from a “short” position near-term, with retail, entertainment and telecom following closely behind.
The in-house survey was conducted April 26-30, 2010, via email to 3,000 TradeKing clients, with an estimated 95 percent confidence level. The survey results were segmented into client groups in five major metro regions and their surrounding areas, including New England, New York, Chicago, San Francisco and Los Angeles. For information on the region-specific findings, contact firstname.lastname@example.org.
TradeKing (http://www.tradeking.com) is a nationally licensed online stock and option trading broker offering simple, low trading fees ($4.95 per trade plus $.65 per option contract) with no hidden costs or account minimums.1 A pioneer in integrating new financial social media as part of its innovative online equities, options trading and fixed-income trading platform, TradeKing has received multiple five-star ratings from top industry sources and was given five stars in customer service by SmartMoney2 Magazine, ahead of OptionsXpress, Scottrade, Fidelity and TD Ameritrade. (June 2009 SmartMoney Broker Survey).
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