Investor bullishness is at a 3-year high but concerns about inflation have soared, E*Trade survey reveals

NYSE TRADER
  • 65% of active investors said they are bullish about the current market in a recent E*Trade survey.
  • Meanwhile, the number of investors who said inflation is a top concern skyrocketed from the previous survey.
  • Inflation data released Tuesday showed prices increased more than expected in June.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

A small survey from E*Trade reveals that investors are growing more optimistic about the stock market, but are also significantly more concerned about inflation than they were a few months ago.

In a July survey of 898 self-directed active investors, 65% of respondents said they are “bullish” about the current market. That’s up from 61% in the previous quarter’s survey and marks a three-year high.

Meanwhile, concerns about inflation skyrocketed 21 percentage points from the previous survey, with 35% of respondents selecting inflation as one the top two risks they see to their portfolios. Market volatility (27%), coronavirus (23%), and a recession (17%) followed behind.

In the previous quarter’s survey, only 14% of respondents selected inflation as one of the top two portfolio risks.

On Tuesday, inflation data reflected in the Consumer Price Index showed that prices roses more than expected in June. CPI increased 0.9%, the largest one-month change since June 2008. Core inflation has now exceeded 0.7% for three consecutive months, though many on Wall Street and the Federal Reserve insist that inflationary pressures will be transitory.

“The headline CPI numbers have shock value, for sure; however, once you realize that a third of the increase is used car prices, the transitory picture becomes more clear. Inflation is rising, but things are well behaved and have not changed materially,” said Jamie Cox, managing partner for Harris Financial Group.

The survey was conducted from July 1-9 2021 among an online US sample of 898 self-directed active investors who manage at least $10,000 in an online brokerage account. The survey has a margin of error of ±3.20 percent at the 95 percent confidence level. It was fielded and administered by Dynata.

asdfadsf

Read the original article on Business Insider

A majority of investors and business owners have faith in Biden’s economic boom, new UBS survey finds

small business owner bakery
Jorge Sactic is the owner of Chapina Bakery in Langley Park, Maryland.

  • About 64% of investors and business owners see Biden’s policies aiding the global recovery.
  • A majority also said Biden’s measures will support global markets, according to a UBS survey.
  • The optimism comes as Biden preps another $4.1 trillion in spending to boost the economic recovery.
  • See more stories on Insider’s business page.

The Biden boom is in full swing and people like what they see.

Investors and business owners around the world are largely optimistic that the Biden administration’s economic policies will fuel a robust recovery and leave them on better footing, according to a recent UBS survey. Some 64% of respondents view the administration as having a positive impact on the global economy. Six in 10 believe the White House’s policies will support global markets.

Roughly 57% of investors and business owners said the Biden administration has benefitted their personal finances, and 54% of business owners said the policies benefitted their companies.

In just the first 100 days of his time in office, President Joe Biden has embarked on one of the most ambitious policy strategies in modern history. The president passed a $1.9 trillion stimulus measure – the second-largest in history – on March 11 and has since unveiled follow-up packages that include roughly $4.1 trillion in additional spending. Economists have largely linked soaring retail sales and stronger economic growth to the stimulus measure.

To be sure, President Joe Biden’s policies aren’t the only cause for optimism. New COVID-19 cases in the US sit at their lowest seven-day average since October, and state and local governments have been slowly rolling back lockdown measures for weeks. And while the vaccination rate has slowed, it still sits at an average 2.5 million doses per day. At the current rate, the US will reach herd immunity over the next three months, according to Bloomberg data.

In the US specifically, seven in 10 investors expressed hope about the path of the economy. That compares to just 52% three months ago and makes US investors the most positive globally, UBS said.

The share of US investors growing positive toward stocks rose to 71% from 59%. The shift underscores a broader move toward riskier assets as investors ditch the safe havens they held at the start of the pandemic and position for a swift recovery.

The responses join other sentiment gauges that have turned stronger in recent months. The University of Michigan’s consumer sentiment index rose to a fresh pandemic-era high in April, according to a Friday release. That level is the highest since March 2020. Separately, the Conference Board’s consumer confidence measure rose to its highest level since February 2020 as the healing labor market and latest round of stimulus checks boosted outlooks.

UBS interviewed 2,850 investors and 1,150 business owners around the world from March 30 to April 18. Responses were sourced from 14 markets including the US, the UK, Mexico, mainland China, Japan, Italy, Brazil, and Mexico.

Read the original article on Business Insider

Most institutional investors say the market is underestimating COVID-19’s long-term impact on the economy, a Natixis survey finds

A man wears a protective mask as he walks on Wall Street during the coronavirus outbreak in New York
A man wears a protective mask as he walks on Wall Street during the coronavirus outbreak in New York.

  •  A new Natixis Investment Managers survey of  500 institutional investors found that 8 in 10 say the market is underestimating the pandemic’s long-term impact on the economy.
  • The results reveal a stark contrast to calls from more bullish voices, like Wharton’s Jeremy Siegel who says the economy and stock market will be stronger than expected in 2021.  
  • The survey also highlighted the sectors investors anticipate will outperform in 2021, and the areas they’re most concerned about heading into next year.
  • Visit Business Insider’s homepage for more stories.

Eight in 10 institutional investors say the market is underestimating the COVID-19 pandemic’s long-term impact on the economy, and 79% don’t expect a full economic recovery until 2022 or 2023.

That’s according to the recently released Institutional Investor Outlook survey from Natixis Investment Managers. The firm surveyed 500 institutional investors who collectively manage more than $13 trillion in assets in 29 countries. 

The survey results reveal a stark contrast to more bullish calls on the economy, like Wharton’s Jeremy Siegel who says the economy and stock market will be stronger than expected in 2021.  

The S&P 500 continues to break new records, but over three quarters of investors are wary of assuming that run will continue- 78% of institutional investors say current market growth is unsustainable, while 95% see the potential for a market correction in at least one sector. 

Read more:The equities chief at $1.4 trillion Franklin Templeton says stocks are ‘priced for perfection’ – but investors still shouldn’t wait to get in. He tells us 9 ways they can get the market-beating returns.

According to Natixis, investors are most concerned over a correction in real estate, technology, and cryptocurrency. 

However, technology and healthcare are two sectors investors expect to outperform in 2021. 66% expect technology to outperform in 2021, while 65% expect healthcare to exceed expectations. But investors anticipate more beaten-down sectors of the market, like real estate, financials, and industrials to continue to underperform.

Read the original article on Business Insider