Schwab Survey: Bullish Sentiment Surges Among Retail Traders
More than half of traders have a bullish outlook for the first quarter – the highest level of bullishness since 2021
Traders’ outlook for the economy has also become more optimistic. Nearly half (48%) of traders think the
“As the economy continues to show signs of improvement, trader optimism is on the rise with bullishness at its highest level since we began the survey,” said
Trader concerns and confidence
In the first part of 2024, geopolitical and global macroeconomic issues emerged as the top concern weighing on traders’ minds (18%), followed by the political landscape in
Primary concerns around investing |
1Q ‘24 |
4Q ‘23 |
3Q ‘23 |
2Q ‘23 |
1Q ‘23 |
Geopolitical or global macroeconomic issues |
18% |
5% |
8% |
10% |
9% |
Political landscape in D.C. |
16% |
21% |
13% |
13% |
12% |
Market correction |
9% |
8% |
10% |
7% |
6% |
Uncertainty/potential increase in market volatility |
9% |
7% |
7% |
6% |
7% |
Potential of a recession |
9% |
11% |
14% |
18% |
15% |
Inflation |
9% |
11% |
10% |
8% |
12% |
Fed holding rates steady |
6% |
3% |
1% |
n/a |
n/a |
Traders point to the
Concerns aside, traders’ confidence in their own decision-making, similar to bullishness, hit the highest level since Schwab began its survey at 68%. Additionally, the number of traders who say they feel better off financially compared to a year ago reached 54%, up 21 percentage points quarter-over-quarter.
“It’s encouraging to see that traders’ overall confidence in their decision-making continues to grow,” said Kostulias. “Part of that is market-driven, but it also aligns with what we’re seeing in terms of trader clients’ interest and engagement with investing and educational tools, content, and research. As traders utilize more tools and resources, they are in a better position to vet ideas and strategies and make informed trading decisions. That is why this is such a big focus at Schwab, and a critical component of the Schwab Trading Powered by Ameritrade ecosystem.”
Sector and asset class outlook
At the sector level, traders are most bullish on information technology (55%), followed by health care (51%) and energy (46%). They are most bearish about real estate (41%) and consumer discretionary stocks (35%).
Traders are largely bullish on AI stocks (61%), as well as value stocks (54%) and domestic equities (52%), while they are most bearish on international stocks (35%),
Looking ahead to the next three months, about half of traders plan to move money into individual stocks while nearly 40% plan to move money into ETFs.
Portfolio Changes Planned in Next 3 Months |
1Q ‘24 |
4Q ‘23 |
Move money into individual stocks |
52% |
45% |
Move money into ETFs |
39% |
33% |
Move money into fixed income investments |
27% |
26% |
Move money into cash investments |
20% |
23% |
About the
About Charles Schwab
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Disclosures
Content intended for educational/informational purposes only. Not investment advice, or a recommendation of any security, strategy, or account type.
Historical data should not be used alone when making investment decisions. Please consult other sources of information and consider your individual financial position and goals before making an independent investment decision.
All investments involve risk including the possible loss of principal. Please consider all risks and objectives before investing.
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Director, Corporate Communications
(203) 434-2240
margaret.farrell@schwab.com
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