“Every day” investors weigh in on the markets, economy and health care in latest survey
TD AMERITRADE Holding Corporation (NASDAQ: AMTD) recently asked a panel of its retail clients for an “every day investor’s” perspective on the markets, the economy and whether recovery is in sight. The result - as the markets have climbed in recent months, so too has investor sentiment.
The survey found that 45 percent of TD AMERITRADE’s clients surveyed agreed that news about the stock markets indicates that it is a good time to invest. Furthermore, 39 percent of investors surveyed claimed to have put that bullishness into action over the last month by investing new money in the markets. It is a sign that while conditions are not perfect, investors still feel compelled to stay engaged.
“There has never been a time when retail investors have had more to choose from in terms of information, products and tools to help guide their investment decisions,” said Peter Sidebottom, executive vice president of product, marketing and client experience. “We are helping our clients find opportunities in a variety of markets - up, down and even sideways - and their continued engagement is abundantly clear in our research.”
However, while positive sentiment is increasing, some bearishness on the part of retail investors remains. One in five investors surveyed reported removing some or all of their money from the markets in the last month, up from the 14 percent who reported doing so in April 2009.
And, while the number one destination for that money leaving the stock market has been and continues to be money markets (37 percent), more investors are taking money out of the markets to pay down mortgages or other debt. The response rate of 16 percent is an increase from 11 percent in April 2009.
Other findings included:
- Retail investors surveyed believed that Financial Services (25 percent) and Technology (21 percent) would be the best performers in the near-term, and that Consumer Goods and Health Care (21 percent each) would be the poorest performers.
- 46 percent of investors surveyed reported a somewhat or very optimistic outlook for the U.S. economy, while 27 percent reported a somewhat or very negative outlook.
- Nearly six in 10 (56 percent) retail investors surveyed said it will take three years or less for major market indices to regain all-time highs previously achieved in Fall 2007. Another 31 percent said it would take five years or more to do so.
- 50 percent of TD AMERITRADE clients surveyed thought that a public health care option was a bad idea, 35 percent thought it was a good idea, and another 15 percent were undecided.
Investors have also learned a lot from their interactions with the markets over the last year, and many are changing their behavior. Of those surveyed that admitted making such changes,
- 47 percent are following financial news more frequently;
- 28 percent are checking account balances more frequently;
- 15 percent are utilizing more risk management tools; and
- 13 percent are reading their statements more often.
For more information on retail investor sentiment, please visit the TD AMERITRADE Newsroom.
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Survey Methodology
This survey was conducted online within the United States by InsightExpress on behalf of TD AMERITRADE between August 18 and September 6, 2009 among 595 current TD AMERITRADE clients (aged 18 and over). Respondents were selected from among those who have agreed to participate in InsightExpress surveys. The data have been weighted to reflect the composition of the TD AMERITRADE client base. The views expressed by respondents in these surveys are not the views of TD AMERITRADE, or its subsidiaries, and should not be considered investment guidance or any kind. InsightExpress and TD AMERITRADE are separate, unaffiliated companies and are not responsible for each other''s products and services.
About InsightExpress
InsightExpress is a leading provider of high-quality, digital marketing research and plays a preeminent role in the measurement of advertising effectiveness across online, mobile and other media. Through its patented technologies, proprietary solutions, world-class expertise and time-tested research principles, InsightExpress transforms the way advertisers, agencies, publishers and researchers optimize their marketing activities. InsightExpress is headquartered in Stamford, CT, with offices in San Francisco, New York, and Los Angeles.
About TD AMERITRADE Holding Corporation
TD AMERITRADE Holding Corporation (NASDAQ: AMTD), through its brokerage subsidiaries,(1) combines innovative trading technology, easy-to-use and understand trading tools, investment services, investor education and superior client service to create a market-leading financial services experience. Now home to the award-winning thinkorswim trading platform(2) and the Investools investor education program, TD AMERITRADE provides millions of retail investors, traders and independent registered investment advisors (RIAs) with the tools, service and support they need to help build confidence in today’s rapidly-changing market environment. The Company’s common stock trades under the ticker symbol AMTD. For more information and resources for journalists, please visit the TD AMERITRADE newsroom at www.amtd.com.
(1)TD AMERITRADE, Inc., member FINRA (www.FINRA.org) /SIPC (www.SIPC.org), TD AMERITRADE Clearing, Inc., member FINRA/SIPC, and thinkorswim, Inc., member FINRA(www.FINRA.org) /SIPC (www.SIPC.org) /NFA (www.nfa.futures.org).
(2)thinkorswim was rated #1 overall online broker, “best for frequent traders,” and “best for options traders” in Barron’s ranking of online brokers, 3/16/2009. thinkorswim was evaluated versus others in eight total categories, including trade experience/execution, trading technology, usability, range of offerings, research amenities, portfolio analysis & reporting, customer service & access and costs. thinkorswim topped the list in 2009 with the highest weighted-average score. Barron’s is a registered trademark of Dow Jones & Company ©2009.
Contacts:
TD AMERITRADE Holding Corporation
Kim Hillyer, 402-574-6523
Senior
Manager, Communications
kim.hillyer@tdameritrade.com
or
Jeff
Goeser, 402-597-8464
Director, Finance and Investor Relations
jeffrey.goeser@tdameritrade.com
