This Day On The Street
Continue to site
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

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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%
YHOO $36.00 -0.03%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs