Tags: Schwab | sentiment | poll | stocks

Schwab Survey: US Stock Investors Growing More Bearish

By    |   Thursday, 27 March 2014 01:38 PM

A survey by discount broker Charles Schwab shows U.S. stock investors are growing less optimistic, just like their professional counterparts.

The latest Schwab sentiment poll showed bearishness among retail investors has grown to 20 percent, up from 10 percent in December 2013.

While that finding shows a rising note of caution, 38 percent are still bullish, and the largest percentage, 42 percent, are neutral.

Editor's Note: 38 Trades That Could Turn $1,000 Into $49,000

With the current bull market now more than five years old, the benchmark S&P 500 has gained more than 200 percent, MarketWatch noted.

Lipper data show money flow into equity mutual funds continues. However, the levels are not nearly as high as when stocks peaked in late 2007, MarketWatch said.

Randy Frederick, managing director for active trading and derivatives at Schwab, said, “The vast majority of retail investors who left the stock market in droves after the crash of 2008 have not come back yet and are holding cash.

“Our outlook for 2014 still remains favorable, as we do not see the signs that the bull market reached its top.”

But Frederick also predicted stocks are ready for a classic correction.

A Bloomberg News column dissects a recent client letter from hedge fund investor Seth Klarman, which is decidedly bearish.

“The longer [quantitative easing] continues, the more bloated the Fed balance sheet [becomes] and the greater the risk from any unwinding. The artificiality of today’s markets is pure Truman Show,” Klarman wrote.

CNBC reported that a fresh tendency for momentum stocks to fall instead of keep rising “looks set to spread to the broader market.”

CNBC noted biotech stocks, which had been market darlings over the past year, have slumped 10 percent over the past week, while big-name high-flyers like Netflix, Priceline, Pandora and Facebook have also taken a beating in recent days.

Editor's Note: 38 Trades That Could Turn $1,000 Into $49,000

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A survey by discount broker Charles Schwab shows U.S. stock investors are growing less optimistic, just like their professional counterparts.
Schwab,sentiment,poll,stocks
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2014-38-27
Thursday, 27 March 2014 01:38 PM
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