Study shows U.S. traders are optimistic

Is this positive/negative indicator?

ST. LOUIS, May 21, 2014 –As the bull market extends into its sixth year, results from the Scottrade 2014 American Trader Study show 97% of participants surveyed feel optimistic about their investments, and 47% overall are very optimistic.

“Following a bull ride of a year filled with upward momentum for the stock market, positive sentiment remains strong in 2014,” said Brian Bachelier, vice president of Active Trader Strategy for Scottrade, Inc. “Traders surveyed are telling us they are optimistic, feelings of apprehension for an impending bubble have yet to set in and they are still eager to capitalize on the energy of the market.”

Nearly 94% of survey participants, who on average reported making 27 trades over the past 12 months, said their financial situations have improved or stayed the same in the past year. They also expect their finances to continue to improve with 70% projecting their financial situations to be “better off” next year.

The survey results show retail traders feel most bullish about technology. Nearly 60% of respondents state they traded in the technology sector within the past 12 months and about half (51%) are planning to make technology trades in the next 12 months. When asked about expectations for the tech sector, 58% believe prices will move upward in the next six months, while significantly fewer respondents are bullish about the Dow Jones Industrial Average (46%) and Real Estate markets (47%) for the same timeframe.

Two emotions rise to the top when traders were asked to describe how trading makes them feel: challenged and excited. Selected by 49% overall “Challenged: trading provides mental stimulation” was the top choice, and 46% said they “get an adrenaline rush” when they trade, compared to less popular emotions like “in control/confident” (41%), “intelligent” (35%), “anxious” (29%) or no feelings at all (3%).

About the 2014 Scottrade American Trader Survey The study was commissioned by Scottrade and conducted online with a nationally representative sample of 1,029 traders, who typically hold short to intermediate positions, between March 3 and March 31, 2014. 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 percent at 95% confidence.


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