In line with their bullish expectations, 26 percent of investors surveyed indicate they plan to use their 2010 tax refund to further invest in the stock market, compared with only 18 percent who said they would use it to help pay down personal debt and 17 percent who plan to add it to their savings. Thirty-three percent of those responding did not believe they would be eligible for a tax refund this year.
“As we compare the results of this late April survey with those from January, we see investors sticking to their bullish guns,” said Don Montanaro, Chairman and CEO of TradeKing. “As more signs of economic improvement emerge, investors seem to be getting more comfortable with the idea that the market will finish the year in a positive way as long as interest rates remain low and unemployment levels continue to stabilize.”
Investors Keep Eyes on Interest Rates and Unemployment as Key Trading Indicators; Pick Top Sectors for Success over Next Three Months
Among those surveyed, 45 percent listed interest rates and U.S. unemployment claims as their top trade triggers to watch closely over the next three months. Quarterly earnings came in second as the most critical trade triggers to watch with 37 percent, while the U.S. housing market and consumer spending tied for third at 36 percent.
When asked to pick the best sectors for the next three months from a “long” position, respondents listed energy, technology and commodities as their top three. The finance sector took top spot as having the most potential from a “short” position near-term, with retail, entertainment and telecom following closely behind.
