Investors See Bullish Q4 Ahead
According to a recent survey from E*Trade, active investors are more bullish about the fourth quarter than they were about the third quarter. "While Q3 saw investors bracing for the aftershocks of Brexit, Q4 finds investors' optimism in the market and U.S. economy remarkably strong especially considering all the uncertainty surrounding the election and additional Fed action," said Mike Loewengart, VP of Investment Strategy at E*Trade Financial. Loewengart added that investors may have "taken to heart" the reality that non-political macro events, like interest rates and inflation, typically affect the market much more than elections. The survey also found that "Easy Rider" is catching up to "Dazed and Confused" as the movie title that best describes investor views of the market. The former increased 10 percentage points, while the latter dropped 11 percentage points since the third quarter. Slightly more than half of all investors surveyed also believe the U.S. economy is healthy enough for additional rate hikes this quarter, up 18 percentage points from Q3. Meanwhile, half of all investors in the survey believe the information technology sector offers potential in Q4, up 6 percentage points from the previous quarter. Finally, while investors still favor domestic markets, interest in international markets-both developed and emerging-has increased significantly since Q3, according to E*Trade.
