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E*TRADE’s Survey Results: What Do Investors Expect in 2018?

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Investor optimism

On January 17, 2018, E*TRADE Financial Corporation (ETFC) released the results of its survey focusing on investors’ views of the markets. The results reflected positive investor sentiment. Around 68% of the total investors surveyed were bullish, representing a 3.0% increase compared to 1Q17 and a 5.0% increase compared to 4Q17.

Around 80.0% of the investors surveyed expect that the market could see upward momentum in 1Q18. This percentage has improved by 17.0% compared to 1Q17 and by 11.0% compared to 4Q17.

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Favorable outlook

E*TRADE’s management believes that investors are optimistic about the markets after a strong 2017. According to the survey, ~50.0% of the retail investors surveyed expect that the energy space presents investing opportunities in 1Q18. This percentage rose 3.0% compared to 4Q17.

The survey results revealed that retail participants’ interest in the financial sector increased 4.0% compared to 4Q17. As more rate increases by the Federal Reserve are expected this year, retail investors are optimistic about the sector. The reduced tax rates could further fuel investor confidence in the financial sector. According to the survey, investor interest in foreign assets rose 8.0% compared to 4Q17.

Market cap

As of February 7, 2018, E*TRADE’s market capitalization stood at $13.9 billion. Among its peers (XLF), Charles Schwab (SCHW), TD Ameritrade (AMTD), and Interactive Brokers Group (IBKR) reported market caps of $70.8 billion, $32.7 billion, and $26.0 billion, respectively, on the same date.

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