Stock prices may be hitting all-time highs, but experienced investors are feeling less bullish, according to an E*Trade survey. According to StreetWise, E*Trade’s quarterly tracking study of experienced investors, the majority of investors remain bullish at 55%, down 6 percentage points from the previous quarter. And while 69% of those surveyed believe the market will either stay where it is or rise, significantly more investors believe the market will drop this quarter, up 11 percentage points to 31%. “Brexit and the resulting market volatility cast a shadow on investors’ views of the market,” said Mike Loewengart, VP of Investment Strategy at E*Trade Financial. “That said, the majority remain bullish, and it’s important to remember that within the context of a long-term investing plan, market disruptions can present opportunities for investors savvy enough to research and find them.” The survey was conducted from July 2 to July 11 of 2016 among an online U.S. sample of 907 self-directed active E*Trade investors who manage at least $10,000 in an online brokerage account. Investors are most likely to choose “Dazed and Confused” as the movie title that best describes their views of the market this quarter. The comedy came in at 40%, up 9 percentage points from the previous quarter and at the highest level in more than a year. “Easy Rider” fell to 17% from 20%, while “Raging Bull” dropped to 5% from 6%. As for sectors, investor interest in the utilities rose sharply in the latest reading, up 14 percentage points to 31%. Loewengart said investors seeking low risk and high dividends are drawn to the utilities sector, viewing it as a “haven during periods of market volatility” and a good source of yield. Nearly one out of three investors this quarter believe the consumer staples sector offers potential, up 3 percentage points. Much like utilities, investors gravitate to this sector because they believe it can potentially be shielded from geopolitical events, according to Loewengart. Finally, regarding the economy, 33% of those surveyed believe the U.S. economy is healthy enough for additional rate hikes this quarter, down 8 percentage points from the previous quarter.
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