Investor sentiment points to a great 2021. Could investors’ optimism prove to be true? Can they be relied on for trading decisions?
Survey Reveals Investors’ Hopes for a Bright 2021
Hard data is essential for making the right trading. That’s why new traders rely on technologically advanced trading platforms as part of online stock trading. If 2020 was a year to forget, the year ahead could be one to remember, if investors who took part in an Investopedia survey are to be believed.
Interestingly, the survey is part of the continuous monitoring of Investopedia readers that began even before the declaration of the pandemic in March. Those readers included people right from 18 years of age. This recent survey, however, mostly involved reader investors around 47 years of age who live in the states of Western and Southern United States.
- These investors still favor US equities as their first preference
- Their second and third options are stocks from the Chinese and the emerging markets
While Chinese and emerging markets have outperformed US indexes during the last three months as a result of the poor handling of the pandemic in the United States, there have been robust returns for all these markets since April. This preference for US equities probably reveals investors’ faith in the recovering power of the US market. Factors such as comparatively lower inflation, low interest rates, and strong performance from crucial sectors such as technology have played a part in instilling hope. Something else that can instill the desire to start trading is technology in the form of advanced trading platforms offered by reliable online broker dealers.