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Investors worried, but warming: Investopedia editor-in-chief - YouTube
Channel: CNBC Television
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it's been a rocky first half of the
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trading year for markets but the recent
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rally off the mid-june lows may be
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easing investors anxiety investopedia is
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out with its latest sentiment survey
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tracking the pulse of retail investors
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editor-in-chief caleb silver joins us
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now with an exclusive look at the
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results caleb welcome back um so
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consumers are worried they're anxious
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yeah they're very anxious they're still
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cautious but they're warming up a little
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reminds me the little kid walking to the
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end of the diving board looking saying
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is it time to jump in can i do it can i
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do it not totally going in a little less
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worried than the last round of surveys
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back in june but still highly elevated
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when we look at the last couple of years
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so they're not buying the dip
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necessarily they're sort of positioning
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for what's their top concern at this
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point well their top concern is
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inflation just like everybody else is
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concerned they're also concerned about
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geopolitical uncertainty they're
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concerned about a recession they're also
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concerned about these rising interest
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rates it's that whole gumbo of
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uncertainty though things are starting
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to clear up a little bit and you know
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uncertainty like kryptonite for
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investors especially retail investors
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when they can't see they stay on the
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sidelines
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so how good of an indicator or contra
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indicator is this data generally pretty
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good indicator because these are people
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who are self-directed investors they put
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their own money to work some use
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financial advisors but when they come in
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they're usually coming in with the rest
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of the wave right behind the
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institutions so a pretty good indicator
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but it just shows that maybe the last
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couple of weeks they felt a little bit
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better about things we we clipped the
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survey this morning so this is fresh off
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the uh off the press and they're still a
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little cautious even though we've had a
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nice little rally yeah but you can
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really see the risk-off sentiment among
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these retail investors they're buying a
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lot less cryptocurrency
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not too many nfts anymore not too many
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single stocks even which was surprising
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to me yeah the no-fly zone is crypto a
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lot of people just staying out of it and
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a lot of folks were in there about a
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third of our readers were in it now
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about 27
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stocks outside the us no fly zone for
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them individual company stocks except
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for the mega caps which are their home
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favorites they love the big cap stocks
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they think of those as probably value
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stocks and nfts and options off the
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table completely yeah it almost seems
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like that the mega cap tech are their
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money markets it's almost like their
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place to to park capital but my question
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is how much powder do you think there is
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with the retail investor i've been
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amazed at the resiliency of the fund
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flows coming from the retail community
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in fact even through some of the worst
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of the times we were actually still
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seeing the same fund flows that we were
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seeing from last year but talk about dry
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powder talk about you know a group that
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has taken the market to all-time highs
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um
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are they are they behind us now still
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yeah i think so and the fact that
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they've sort of sat on the sidelines for
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the past several months means they want
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to get back in these are active retail
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investors long-term investors that want
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to participate they're just looking to
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get back in when it feels a little bit
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safer but they're not going to go back
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to those risky areas from 2021 where a
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lot of money was made and a lot of money
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was lost these are folks that like the
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tried and true stocks from apple all the
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way down to ford and jp morgan they like
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the big mega caps so 2021 that was a
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peak in investor anxiety
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so i mean investors are anxious but it's
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still much much lower than what we've
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seen even recently absolutely at the
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peak was 2020 sprint march april of 2020
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it has come way down from that so
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they're not as anxious about market
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events they're more concerned about the
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macro picture right now but that is
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keeping them away from the stock market
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in general for these at least the last
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few weeks do you get a sense of what
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investors are doing outside of stock i
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mean i know that your purviews stocks in
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their portfolio but in terms of housing
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and other sort of how do they approach
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investing in general do they think it's
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a time to just be hands off overall well
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it's funny because when the market cools
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off they start looking into things like
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how do they get a little bit more equity
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out of their homes or when's the best
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time to put money to work in real estate
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these are active investors looking for
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opportunity wherever it opens uh
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wherever they see the open door right
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now they don't see a lot of open doors
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but they're inching a little bit closer
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again to the end of that diving board i
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think we get a little bit more
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confidence in the market they'll come
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back in all right caleb it's always good
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to see you thank you so much thank you
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caleb silver editor-in-chief of
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investopedia
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i don't know what the read-through is to
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i mean we were just talking about robin
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hood and some of these other sort of
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retail brokerage names well one of the
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things that i've noticed with some of my
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clients in the wealth management world
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is is that there is a little bit of a
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fomo here um folks that actually had a
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little bit of powder and and and again
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i'm looking at caleb's notes here and
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you know the 30 predict are predicting a
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10
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drop still in the next three months um
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so sentiment really bad but a lot of
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folks who actually were well you know
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maybe they're well advised maybe maybe
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but they have some cash and some powder
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and really feel like they might be
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missing one of those moments because
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let's face it those coveted lows were
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you know people use their term
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generational generational buying
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opportunity i think too much but that
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was an opportunity that truly you were
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able to buy stocks uh even not even at
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those lows so
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that's what i see from the retail
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investor and we said that there wasn't a
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buy that dip mentality i'm seeing some
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of that again yeah what are you seeing
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courtney you know actually i have to
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agree with that and i've seen some of
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that with my own clients as well but i
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actually say this is good news right
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people when they're the most nervous
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you're usually that's when you're going
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to get your market bottom by the time
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that they wait for that clarity that
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they're hoping to find at that point the
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markets have already priced that in and
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it's gone up so i think this is
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something you want to take as an
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investor look at this as an opportunity
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because people are nervous that's
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probably about the time you want to
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start getting in jeff
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yeah i just don't think they're nervous
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enough right i mean price affects mood
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it's it's amazing how that always
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happens right i don't think sentiment is
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kind of the coil it was heading into
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earnings season i mentioned bull bears
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you've seen bulls outnumber bears for
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the first time since april you're seeing
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it in some of this data so i think sort
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of the pressure and that anxiety easing
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isn't necessarily a good thing going
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forward and i think it serves to take
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some of the momentum out of the rally
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that we're seeing right now the other
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thing that i thought was sort of
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interesting is that you know people are
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buying less risky stuff again not
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surprising i think that in particular
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continues i keep talking about quality
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growth those types of companies i think
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you probably continue to see that going
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forward
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you
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