With stocks continuing to hover around record territory, a significant number of investors remain bullish on the second half of 2014, according to the latest client sentiment findings from Charles Schwab, one of the largest full-service investment services firms with more than $2.4 trillion in client assets.
Rodney Prezeau, senior vice president of client experience at Charles Schwab. (Photo: Business Wire)
Nearly half (46 percent) of Schwab clients surveyed say they’re “bullish” as they look ahead to the second half of 2014, up two percentage points from the fourth quarter of 2013. Thirty-two percent feel their portfolio is well-positioned to grow with the market and 14 percent say they plan to increase their allocation to equities. Less than a third (28 percent) believe the market is due for a significant correction, while about a quarter (26 percent) say they aren’t clear about what’s next for the market. Despite some mixed views about the market’s direction in the immediate future, 80 percent of Schwab clients surveyed say they are optimistic about reaching their long-term financial and investment goals. “While our clients understand that there might be fluctuations in the market in the near-term, they’re comfortable with their long-term investment plans and don’t allow short-term events to steer them off course. In fact, a majority (64 percent) of those surveyed say they have mostly stuck to their asset allocation plan since the 2008 financial crisis,” said Rodney Prezeau, senior vice president of client experience at Charles Schwab. “And not only are they staying on track, but they’re feeling more positive as well. Forty-three percent of clients surveyed are confident making investment decisions and 58 percent feel better off financially compared to a year ago. Both of these measures are at five-year highs for our survey.”