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

Institutional FX

PrimeXM reports lower volumes for July as summer lull bites

PrimeXM has reported weaker trading volumes for July 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Retail FX

FCA warns of ATFX Global Trading / ATFXcoin

In its latest clampdown against the specific type of ‘clone fraud’, the Financial Conduct Authority (FCA) has warned local investors to watch out for a company called ATFX Global Trading / ATFXcoin.

Digital Assets

CME Group to roll out options on Ether futures next month

Derivatives exchange CME Group is set to roll out options on Ether futures on September 12 in a move to bring another level of diversification to cryptocurrency traders.

Industry News, Podcasts

Finance Feeds launches Podcasts: Listen to Ep. #1 feat. Dmitri Galinov of 24 Exchange

The team at Finance Feeds are happy to announce the launch of our Podcast series, available on Spotify and other audio services and hosted by our Editor-in-Chief Nikolai Isayev.

Digital Assets

Madfish launches Yupana.Finance, the first lending protocol on Tezos

Yupana, which aims to provide a similar experience to Aave or Compound, currently supports TEZ, cTEZ, kUSD, tzBTC, uUSD, and uBTC.

Industry News

SEC charges barred broker Anthony J. Mastroianni with $1.2m fraud targeting elderly

Instead of using investor monies to generate income, Mastroianni withdrew over $486,000 of investors’ money from his firm’s bank account and used ill-gotten funds for personal expenses on luxury items, the SEC alleged. 

Digital Assets

Unizen names crypto veteran Michael Healy as chief strategy officer

CeDeFi exchange Unizen has onboarded crypto industry veteran Michael Healy, who originally worked for Wikileaks and built their android application in 2010, as Chief Strategy Officer.

Institutional FX

Sterling Trading Tech adds FX and Crypto to risk and margin system

The Risk-as-a-Service solution provides supports FX spot, forward, and swap trades and positions, in any currency pair, as well as Crypto including crypto priced in any currency.

Interviews, Metaverse Gaming NFT

Exclusive: Wayne Marcel explains FIO Protocol amid fight against fraud on NFT markets

It’s been 12 years since Satoshi Nakamoto released the white paper that introduced Bitcoin to the world.