MoneyShow.com, the largest multimedia investment education destination for investors, traders, and financial advisors, announced today the results of its MoneyShow.com Investors’ survey at The World MoneyShow in Orlando, Florida. The results revealed that 70% of investors are bullish about the market, predicting the S&P 500 to increase between now and the end of the year – up from 33% in the last Sentiment Indicator in August 2010. Most investors, 53%, believe we are in a volatile market that won’t make big moves either way.
Interestingly, over 46% of investors have more than 20% of their portfolios in cash or cash equivalents. This underscores the amount of cash on the sidelines which, if invested in the future, could fuel a continuation of the current bull market.
Investors are split when it comes to their expectations of what the Federal Reserve will do in 2011 with 41% indicating rates will stay the same and monetary stimulus will end, while 30% believe interest rates will rise and monetary stimulus will end and 29% believe rates will remain unchanged and monetary stimulus will be maintained or increased. With 70% anticipating interest rates staying low, 56% believe inflation will increase to between 1% and 3%.
The majority of investors, 64%, predict the housing market to bottom after 2011. Large-cap U.S. stocks, and small or mid-cap U.S. stocks, are the asset classes 51% of investors anticipate performing best for the remainder of the year. This represents a dramatic shift from the last Sentiment Indicator survey in August 2010 where 58% of investors felt precious metals and emerging markets would perform best through the end of 2010.
The MoneyShow.com Investors’ Sentiment Indicator polled 1,068 investors between January 31 and February 4.
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