Nearly 85 percent of traders say they are confident that stock prices will either remain at or near their current levels or continue to rise over the next three to six months, according to new data captured in Charles Schwab’s most recent Trading Services Sentiment Survey from September 2013 .
Despite geopolitical uncertainty and near-term risks – including gridlock in Washington, D.C. over government funding, the debt ceiling and the specter of tapering looming from the Federal Reserve – bullish sentiment increased to 44 percent, compared to June 2013 when some 38 percent of those surveyed identified themselves as bullish.
In addition to reporting a positive outlook on the market, nearly all respondents (99 percent) describe themselves as having a moderate to high tolerance for risk when trading. In fact, more than 21 percent of those surveyed report a higher risk tolerance today than just one year ago. Moreover, with September having marked the five year anniversary of the financial crisis, nearly half (48 percent) of respondents report that they are more confident in the markets today than they were in September 2008.
“Against the backdrop of economic and geopolitical uncertainty, 55 percent of respondents say that the primary reason they trade is to take control of their finances,” said Kelli Keough, Senior Vice President of Trading Services at Charles Schwab. “With another 41 percent saying they trade primarily to generate income, we continue to see today’s trader taking a hands-on approach to engaging with the markets. Contrary to what might be general perception, less than two percent of traders say they trade because they enjoy the thrill.”The latest Trading Services Sentiment Survey also revealed that traders continue to evaluate trading opportunities while on-the-go. Just over 30 percent report conducting stock research from a mobile device or tablet. Data from the Charles Schwab Trading Services Sentiment Survey were derived from responses of participants in Charles Schwab’s virtual education event on September 19, 2013. Schwab provides traders with superior trading platforms, free seminars and workshops, online education resources and 24-hour access to experienced trading specialists, with no minimum trade requirements. For more information, please visit www.schwab.com/trader or call 888-245-6864. Follow us on Twitter: @Schwab4Traders. About Charles Schwab At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.