By Brian Bachelier, VP of Trader Segment Experience
Traders are looking at improvements in their financial situations, according to a new Scottrade study. When asked in the Scottrade® American Trader Study, 49% of traders reported being better off this year than they were a year ago, and 68% expect to be better off a year from now.
Why Are Traders Predicting Financial Improvements?
The expectations traders have for their financial situations over the next year may be linked to their expectations for the market rather than any changes in their portfolio strategies. When this study was conducted in March, a majority of the 1,001 participants surveyed predicted bullish performance for the NASDAQ, Dow Jones and S&P 500 indexes through August 2013.
While it hasn’t all been smooth sailing, both the Dow Jones Industrial Average and the S&P 500 closed at record highs during the first quarter of this year, lending some credibility to expectations revealed in the American Trader Survey. As for the NASDAQ, it didn’t reach the more-than-10% growth of its peers, but the tech-heavy index still brought in an 8.2% gain for the quarter.
Surprisingly, even though a majority reported expecting their financial situations to continue improving, the traders surveyed indicated they aren’t planning to change their trading strategies right now. When asked about the sectors and industries they’d traded in during the last 12 months and which of those sectors and industries they planned on trading in during the next 12 months, the results were almost identical.
What are your market expectations for the rest of this year and next year?
About the 2013 Scottrade American Trader Survey
The study was commissioned by Scottrade and conducted online with members of Survey Sampling Inc.’s SurveySpot consumer panel. Fielded with a nationally representative sample of 1,001 traders, who typically hold short to intermediate positions, between March 1 and March 15, 2013, the study examined attitudes, behaviors and trends related to active trading. All participants were at least 18 years of age, manage some or all investments without the help of a broker, and have traded in the last 12 months. Margin of error for the overall poll is +/- 3.1 percent at 95 percent confidence.
The following results are presented solely to illustrate the findings from the 2013 American Trader Study and in no way represent the opinions of Scottrade. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security. Investors should fully research any security before making an investment decision.