This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Amidst Increased Speculation Over Market Direction, Experienced Investors Get Hands-on

Stocks in this article: ETFC

E*TRADE Financial Corporation (NASDAQ:ETFC) today announced results from the most recent wave of StreetWise, E*TRADE’s quarterly tracking study of experienced self-directed investors. The data suggests that these investors have grown more conservative over the last quarter and advocate diversification.

Bearish sentiment grew six percent, to 40 percent of the total population. There is more uncertainty about market direction than last quarter: when asked which of seven movie titles best describes how they feel about the market, the top choice was tied between Dazed and Confused (21 percent) and Easy Rider (20 percent). Easy Rider was previously first choice, down five percent this quarter. When choosing investments, fewer suggest individual stocks (66 percent, down six percent) and Exchange-Traded Funds (“ETFs”) (36 percent, down seven percent) — and have shifted towards fixed income mutual funds, bonds, CDs and commodities.

“For long-term investors, it’s important during periods of uncertainty to make sure you have a plan and you’re sticking to it,” said Lena Haas, SVP, Retirement, Investing and Saving at E*TRADE Financial. “Reacting to the market can lead to emotional decision-making. Make sure any adjustment you make supports a well-diversified portfolio that aligns with your objective, time frame and risk tolerance.” Haas also offered the following tips for those investors considering more conservative assets:

  • Make sure one type of risk isn’t being replaced for another. While inflation is low today, it still slowly eats into the purchasing power of your assets. Low current yields on fixed income offer little returns that won’t necessarily cushion against an uptick in inflation.
  • When considering bonds, diversification by maturity and duration is key.
  • Conservative investments can also be found in equities themselves by focusing on those that pay dividends and are in historically defensive sectors — these can be less volatile than the broader market during pull backs.
  • Allocation-based funds such as balanced and target date investments are also attractive because they systematically take care of ongoing rebalancing for you.

Several data points also suggest that experienced investors are taking a markedly hands-on approach:

  • Three out of five (59 percent) evaluate their portfolio weekly.
  • Over one third manage their account with a mobile device (30 percent use smart phones; 32 percent use tablets).
  • 92 percent advise “keeping a watchful eye” on your portfolio — more than any other piece of advice.

“Investors want constant access to their portfolios — the volatility over the past several years has been a big wake-up call that they should keep a watchful eye,” said John Matos, who oversees E*TRADE's digital channels. “Technology has advanced to where investors can do so much more on a mobile device. Our mobile app delivers research, earnings reporters, charting tools, and other resources for investors who demand comprehensive oversight over their investments.”

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs