The survey reflects behaviors that speak to a migration to a more independent approach to investing.
- In making buy/sell decisions, investors rely on company earnings reports and personal experience with a company's products or services by ratios of nearly 3 to 1 and 2 to 1, respectively, over that of a financial advisor's or stock broker's advice.
- 51% of investors said they do their own extensive research before they buy a stock.
- News and television reports surpassed brokers as a source of information about particular companies by 58%.
"The survey shows the degree to which investors are becoming self-sufficient," said Jeroen Veth, CEO of Zecco. "Despite the financial crisis and massive loss of wealth in the stock market, the individual investor is feeling empowered and confident in his or her ability to do their own research, analyze the market, and make intelligent investment decisions."
Investors Show Cautious Optimism
In a sign of renewed confidence in the stock market:
- 75% of the respondents said they were investing cash from their savings/checking accounts or which was lying fallow; i.e., the number one source of new investment money is un-invested assets.
- 72% believe that the Dow will continue to rise over the next six months -- 42% expect it to rise more than 10 percent, while 30% think it will rise 1-10%.
- 32% said they are trading more now than they were six months ago.
Investors Hold Decided Opinions on Growth Industries
According to the survey results, investors are bullish on technology and energy stocks; bearish on manufacturing and retail, and divided on healthcare and financial services.