- Investopedia readers are more cautious than they were in May
- More the fear of a slowdown in the market in the next 3 months
- Most are sticking with the stocks they have the property all year round
- Many make risky bets on airlines and energy
The fastest bear market in history, followed by the more rapid recovery for stocks ever recorded has investors feeling more trepidatious than in several years. But while concerns about doping assessments, a resurgence of the sars coronavirus, and the next US presidential elections, the presentation of formidable waves of uncertainty, our readers are sticking with stocks have rolled in the crisis, and even the addition of some risky bets as they navigate a delicate recovery.
In our latest survey of more than 1,000 readers of our daily newsletter, the investors through the ages unanimously agree that they are worried about the current evolution of the market. Nearly 70% of them expect the market to decline in the next three months. Investopedia’s Anxiety Index is off the peaks reached during the height of the pandemic, but is still near historical highs, especially in the personal finance and markets in related areas. But the stocks have defied the economic ruin caused by the pandemic, supported by the government stimulus packages, the Federal Reserve’s extraordinary monetary policies, and the strength of the largest technology and communications companies that carry the major indices.
Our readers across all age groups have been holding and adding to their position in the companies that have carried the market. But the older and the younger, the investors have diverged when it comes to the detention or of the purchase of the risky bets in the energy companies and the airlines.
The Most Popular Stocks To Stay Consistent
The most popular stocks among our readers were largely tech and tech-related companies, with Apple and Microsoft as their first choice.
In fact, the top 6 farms among our readers have remained remarkably consistent throughout the crisis, given the three sets of surveys that we have undertaken since the month of February.
The Health Care Emerges
Over the last two months, our readers have begun to favor health care stocks, in addition to technology and communications. It is a smart bet, as some of the largest pharmaceutical and biotechnology companies have jumped on the hope of vaccines and treatments for COVID-19. When asked, a majority of our readers said that these sectors continue to dominate the market, even if the overall market is weakening thanks to the balance of the summer.
A Look at Tech
The 100+ titles included in our study, the technology stocks are among the most popular, with 63% of our readers reporting ownership of at least one stock in this sector, and 55% to have at least one of the Communication Services stock. The property of Apple and Microsoft to remain strong among our readers, with about a third of our readers own these companies consistently over the last three months. The chip manufacturers, payment processors and, of course, Zoom Technologies, have also been favored, because they benefit from the sudden changes to the way we work.
In the Communication Services, AT&T has remained a top choice among our readers, despite a fall almost since the month of March, followed by Disney. The two companies have been challenged by the pandemic through their activities. The two have under-performed the all of the Communication Services of the Index, but are the companies that many of our former investors have held for decades. Both pay dividends, as well, which may explain a part of loyalty.
Health is an Important Second
The health sector, that our readers selected as the number two in the sector to lead market gains in the near future, has been a top level athlete from the hollow of the end of March. Among our readers, 41% own at least one of the health of the stocks listed below, with Johnson & Johnson and the cannabis well-being of the company Abbvie among the most common. In fact, four of the 12 first aid inventory held by our readers are in the cannabis industry, which shows a wider acceptance of the possible benefits of cannabis for certain health conditions. Cannabis stocks have been decimated in 2020, but the hope of a wider legalisation can attract investors.
The energy continues to the baby Boomers
Old habits die hard, and older investors appear to be die-hard energy investors, in spite of the collapse of the area of the exchange. The survey respondents who are baby-Boomers and older are two times more likely to hold an oil stock in comparison to our younger readers, with Exxon-Mobil and Chevron are among the most popular. Oil stocks generally pay handsome dividends, which may be a reason for their faith, but the damage to the energy complex was important, and the loyalty of these companies is curious.
The post-boomers Make Bets in the airline and Disruptive
Young investors are showing a preference for the airline stocks in a pattern that we have witnessed throughout these last three months. This sector, energy, has been severely punished by the recession, and the visibility of its recovery is cloudy. Most of the major airlines are in the middle of the staff and route consolidations, and it is likely that one or more will not be able to make it through the year. Millennium, investors are also sticking with the transport disruptors, including Tesla, Lyft, and Uber. Tesla is having his best year as a public company, the increase of 260% in 2020, so the attraction is obvious. Uber and Lyft, however, have been seriously questioned, but they will recover much better than the airlines.
Our readers have proven once again to be very savvy when it comes to portfolio construction, and very dedicated to their stock picks. The anxiety has been the main theme of this recent study, which can be attributed to the speed of the recovery of the capital markets, while the economy remains in trouble. All the investors are wondering why this dynamic remains in place, but our readers are by and large stayed invested, and stuck with the stock have rolled in the storm. While they have exposed some of the risk on the scale of the age of the population, they have usually played to the winners, and hold them, even if they have the sense of immersion on the horizon.