The potential unknowns of the impending presidential changeover have not dampened investor confidence — judging by a new survey, just the opposite.
E-Trade Financial’s latest Streetwise survey found that 65 percent of experienced investors feel bullish about the current market. That’s the highest level measured by the survey in two years and reflects an increase of 20 percentage points from one year ago.
Streetwise is a quarterly poll of experienced investors. For the latest edition, 904 self-directed active investors who manage at least $10,000 through online brokerages were queried.
The latest survey also found that 3 in 5 investors believe the market will rise this quarter, an increase of 26 percentage points from one year ago.
Mike Loewengart, vice president of investment strategy at E-Trade Financial, explains:
“While the market started 2016 on a down note, the year ended with a bang — closing at near record highs. With the initial uncertainties of the election, the Brexit vote, and a long anticipated Fed rate hike now in the rearview mirror, many investors see opportunities in 2017, despite the potential unknowns of what a Trump presidency may bring.”
Some investors are making moves that Loewengart says reflect shortsightedness and could hurt their portfolios in the long run.
He tells Business Insider that E-Trade’s survey also found that many investors, especially younger ones, admit to making stock trades based on tweets from President-elect Donald Trump:
- Among survey respondents ages 25 to 34: 60 percent had traded off a Trump tweet.
- Ages 35 to 54: 36 percent
- Age 55 and older: 20 percent
Loewengart explains to Business Insider:
“Older investors have lived through many more market environments, and they are cognizant of the fact that what the president-elect says is much less meaningful in the longer term. The concept of long-term compounding of growth becomes crystallized for someone who’s experienced.”
Wondering where the economy is heading? Check out “What’s Ahead for Stocks, Housing and Oil Prices in 2017?”
Have you made any stock trades based on Trump’s tweets? Let us know below or on Facebook.
How to find cheaper car insurance in minutes
Getting a better deal on car insurance doesn't have to be hard. You can have The Zebra, an insurance comparison site compare quotes in just a few minutes and find you the best rates. Consumers save an average of $368 per year, according to the site, so if you're ready to secure your new rate, get started now.