Bulls take a hit as inflation “dazes and confuses” investors, says E*TRADE

Rick Steves

“Investors are facing several headwinds when it comes to their portfolios, so it’s not too surprising to see bullishness take a big hit.”

E*TRADE has published the results of its quarterly tracking study of experienced investors, revealing cracks in investors’ pandemic-era bullishness.

According to the survey conducted by Dynata, investors are facing several headwinds when it comes to their portfolios, which has caused bullish sentiment to decrease, by 11 percentage points to 54%, for the first time since the onset of the pandemic.

The findings also suggest investors are significantly less likely to think the market will end in the green this quarter – down 14 percentage points from last quarter to 58%.

Survey participants chose “Dazed and Confused” as the number one movie title to describe their attitude toward the market, taking the place of “Easy Rider”.

Two-thirds of experienced investors think that volatility will rise over the next quarter and inflation has become their number one concern: over half of investors (52%) are most concerned about inflation when it comes to portfolio risks, followed by market volatility (41%).

Mike Loewengart, Managing Director of Investment Strategy at E*TRADE Financial, said: “Investors are facing several headwinds when it comes to their portfolios, so it’s not too surprising to see bullishness take a big hit.

“Many are questioning if inflation is here to stay, supply constraints have weighed heavily on purchasing power, and slowing growth prospects seem to be more of a reality. But investors should keep in mind that volatility is part of a healthy market and preparing for pullbacks is key.”

As to sector opportunities for the fourth quarter of 2021, the historically volatile sector of Energy jumped to the top spot for 44% of investors.

Health care remains an area of focus in the context of the pandemic and booster shots, but also due to emerging growth concerns, which lead investors to shore up on defensive names.

IT saw interest ticking down from Q3, but remains strong overall, with 40% looking toward this ever-popular sector.

The survey was conducted last week among an online US sample of 901 self-directed active investors who manage at least $10,000 in an online brokerage account.

The panel is broken into thirds of active (trade more than once a week), swing (trade less than once a week but more than once a month), and passive (trade less than once a month). The panel is 60% male and 40% female, with an even distribution across online brokerages, geographic regions, and age bands.

Read this next

Uncategorized

Moscow Exchange reports $350 billion in November FX volumes

FX trading volumes continued its upward momentum at Moscow Exchange (MOEX) during November, buoyed by a steady rise in volatility coupled with a multi-year effort to bring new business to the platform.

Retail FX

Interactive Brokers’ volumes continue growth trajectory in November

Interactive Brokers LLC (NASDAQ:IBKR) has announced higher trading volumes in November, dwarfing the metrics for October and the same period last year by 20 percent.

Retail FX

Exness trading volume hits record highs for second consecutive ‎month

FX broker Exness’ trading volumes have breached new highs in November, building on the record-breaking turnover streak from the beginning of the fourth quarter. That has been aided by the economic impact from the Covid-19 developments and inflation concerns that apparently sent investors hunting for FX instruments to limit their risk exposure.

Institutional FX

Hedge-fund legend Steven Cohen invests in Dmitri Galinov’s 24 Exchange

24 Exchange, the OTC platform backed by Fastmatch founder Dmitri Galinov, has completed a fresh fundraising round of $14.25 million at an undisclosed valuation. The recent capital injection was led by Point72 Ventures, the venture capital firm of the hedge fund titan Steven Cohen.

Digital Assets

Can Coinbase make or break XRP? – (Congress, XRP rating, JP Morgan)

According to Coinbase’s Council, XRP has the highest rating among 28 cryptos – meaning it is the closest you can get to a security: 4 out of 5.

Digital Assets

Polygon (MATIC) delves deeper into blockchain gaming by partnering with GameOn

Polygon, the Layer 2 scaling solution for Ethereum, has announced a partnership with GameOn Entertainment to build new and different types of NFT games on the network as it seeks to expand into the blockchain gaming and NFT space in a major way.

Retail FX

David Beckham to promote GemForex across Asia

GemForex makes efforts to lead in trading conditions, execution times, safety of client funds and data security, according to the FX and CFD broker holding a Mauritius Financial License.

Retail FX

InstaForex extends sponsorship deal with Borussia Dortmund after German Cup win

InstaForex provides access to trading of forex, CFDs, stocks, futures, options, and cryptocurrencies as the FX industry goes multi asset to address the needs of an increasingly demanding client base. 

Digital Assets

Treasury Secretary Yellen still cant decide on digital dollar

Treasury Secretary of the US, Janet Yellen, has said that she still is not sure whether the US should go ahead and have the digital dollar and follow the example of other major countries including China and India in introducing the same.

<