Spark Trader Limited reports:
New investors poured into the market during the pandemic, and many are optimistic about U.S. stocks in the second half of 2021.
Barry Metzger, director of trading and education at Charles Schwab, said on a conference call with media on Thursday about the firm’s latest Pulse survey of active investors:
“In the last year and a half, we’ve seen a huge influx of new investors, and it’s been amazing.”
Schwab’s semiannual survey asked 500 U.S. investors who make at least 36 stock trades a year.
The survey found that when asked which three sectors would do best as the economy recovers, information technology was the most popular choice, with 40% of investors naming it, followed by health care at 31% and financials at 30%.
Metzger says both novice and veteran investors need to spend more time researching before making a bet. About two-thirds of investors said they spent at least five hours a week researching trades, with online news reports and commentary, research reports and broadcast news cited as the main sources to help them make decisions, according to the survey.
Meanwhile, Meme shares remain popular among investors polled by Charles Schwab. Metzger said.
“We do see a trend of nearly half of investors investing in Meme shares this year. We don’t think the Meme craze will abate anytime soon.”
31% of investors surveyed said they included Meme stock in their trading plans, 27% said they invested in Meme stock “for fun,” and 42% of traders said they invested in Meme stock both for fun and as part of their trading plans.
About the outlook for U.S. stocks over the next three months, 35% of investors call themselves’ bullish, ‘while 45% call themselves’ neutral,’ according to the survey.
Randy Frederick, managing director of trading and derivatives at Charles Schwab, said that wasn’t too surprising given the strength of the stock market this year. Frederick said on a media conference call:
“One of the things we often find is that most people’s views will reflect the recent past, and if we are on an upward trend, they tend to think the upward trend will continue.”
The S&p 500 is up more than 17% this year, the Dow Jones Industrial Average is up 14% and the tech-heavy Nasdaq Composite index is up nearly 13%, according to the data.
Reprint indicated source：Shine Trader Limited Live information