Individual investors are regaining confidence in the stock market and increasingly taking investing into their own hands, a survey of 450 retail investors by online broker Zecco found.
Seventy-five of the respondents said they were investing cash from their savings or checking accounts, or which was lying fallow, and 72% believe the Dow Jones Industrial Average will continue to rise in the next six months. Among this group, 42% said it will rise more than 10%, and 30% expect gains of between 1% and 10%.
Fifty-one percent said they were doing their own extensive research before buying a stock, with 58% saying they relied more on news and television reports than they did their own brokers. Thirty-two percent said they are trading more now than they were six months ago.
“The survey shows the degree to which investors are becoming self-sufficient,” said Jeroen Veth, chief executive officer 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.”
The survey was conducted the week of July 26 via e-mail to randomly selected Zecco customers.