Fidelity Investments recently released a poll of active investors, which found that those investors are confident in the performance of equities and the S&P 500 Index. In this survey, 77% of respondents said they expect the S&P 500 to remain stable or rise more than 100 points before the end of the year. Among active investors, 73% of investors expect a personal return of at least six percent. A year ago, only 63% of investors expected a personal return of at least six percent.
Equities are definitely in favor right now. 71% said they’d put their next investing dollar in equities, with 12 percent choosing cash and 7 percent choosing real estate. Active investors are most bullish about the health care sector followed by the information technology sector and the energy sector. 57% of active investors say they have a defined trading strategy.
This poll was taken during a Fidelity Traders Seminar in late August. More than 1,200 attendees responded to these poll questions. The majority were active investors. For the sake of this poll, active investors were considered those who trade 36 times or more per year.
What does this mean for online brokers? The increased enthusiasm among retail investors is certainly a positive sign for the discount brokers. We’ve seen the Daily Average Revenue Trades (DARTs) begin to rise in recent months, and this polls findings of a confident investor base gives the online brokers some hope that the recent uptrend in trading is more than just a brief blip.
For the full press release regarding this poll of active investors click here.