Optimism for U.S. Stocks Among Retail Investors

Optimism for U.S. Stocks Among Retail Investors

TradeStation Securities, Inc. (“TradeStation”), a Monex Group company and award-winning* broker-dealer, today announced the results of the twenty-eighth Monex Global Retail Investor Survey. The survey, which gauges customer sentiment based on answers to specific questions from a random sampling of customers of Monex, Inc., TradeStation, and Monex Boom Securities (H.K.) Limited reveals high expectations for U.S. stocks among retail investors in Japan, the U.S., and Hong Kong, despite the COVID-19 pandemic.

Although COVID-19 cases continue to increase in the U.S., many investors anticipate U.S. stock prices to continue to rise. Retail investors in all three regions surveyed indicate expectations that the U.S. is the region with the greatest likelihood of stock price appreciation in the coming three months.

“At the beginning of the year, stocks fell drastically as governments worldwide implemented stay at home orders and millions lost their jobs due to the pandemic. However, we saw a dramatic turnaround in April as the stock market rallied, recovering much of the losses incurred in the early weeks of the pandemic,” said John Bartleman, President of TradeStation’s parent company, TradeStation Group, Inc. “As we approach 2021, we remain cautiously optimistic about U.S. market conditions. We expect to see continued levels of volatility as the world grapples with the intensifying pandemic and governments begin to roll out new COVID-19 vaccines.”

Other key findings reveal:

  • The percentage of retail investors who participated in the survey in the U.S. and Japan who had already invested in cryptocurrency reached all-time highs at 21.0% and 16.2%, respectively, aligned with Bitcoin passing $20K and reaching historic levels this month.
  • Overall appetite for cryptocurrency investment remained low, with nearly half of respondents in the U.S. (43.5%) and more than half in Japan (53.5%) citing a lack of interest in cryptocurrency.
  • The forecast Diffusion Index (DI) for the world stock markets remained flat among respondents from Japan, decreased slightly among respondents from the U.S. and increased significantly among respondents from China.

About the Survey

The Monex Global Retail Investor Survey, covering retail clients in Japan, Hong Kong, and the U.S., was launched in June 2011 to gauge client sentiment surrounding market conditions. The twenty-eighth edition surveyed 1,006 respondents from Monex, Inc., TradeStation Securities, Inc., and Monex Boom Securities (H.K.) Limited between November 10 to 30, 2020. The full report is available here.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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