Investors Remain Confident in Markets

The majority of active investors believe the market will remain stable or rise further by the end of this year, but don’t expect to beat it, according to a new poll.

The poll of investors from Fidelity Investments found the eight out of 10 investors are confident in equity performance, expecting the S&P 500 to increase at least 100 points by the end of the year. Although this is a strong percentage of the investors, it still represents a low over the last four years.

As a result of expecting a strong market, 71% will put their next investing dollar into equities, followed by cash (12%) and real estate (7%).

The respondents don’t expect to beat the market’s anticipated growth, although their expected rate of personal return is higher than a year ago. Nearly three-quarters of investors, compared to less than two-thirds last year, expect to see at least a 6% return,

“When the markets are on the move with influences like global conflicts, rising rates and corporate earnings, it’s helpful to take the pulse of experienced investors to understand how they’re weathering it and what their expectations are for the future,” said Ram Subramaniam, president of Fidelity’s retail brokerage business.

The industries that active investors are favoring the most are health care, followed by information technology and energy. Meanwhile, 41% do not like the recent rise in bond prices although 20% saw it as an opportunity.

Lastly, the survey revealed that while 57% of respondents have a defined trading strategy, they don’t always stick to it. Of those who have a strategy, 41% admitted that they only use the strategy sometimes.

“It’s great to see investors have faith in the markets and plan more equity participation, but to give themselves a better chance of beating the anticipated market growth, they should take full advantage of their brokerage firm’s education and tools, as well as consider consulting with a financial professional,” Subramaniam said.