Fidelity Poll Shows Active Investors Confident in Continued Market Growth

Expectations for Personal Rate of Return Rising; Equities and Health Care Sector Most in Favor

BOSTON – Fidelity Investments® today announced the results of a poll of active investors, which found they are confident in the performance of equities and the Standard & Poor’s 500SM Index, which nearly 8 out of 10 respondents believe will remain stable or rise more than 100 points to at least 1,758 by year end. Although active investors don’t expect to beat the market’s anticipated growth, their expected rate of personal return is higher than one year ago, with 73 percent expecting a minimum of six percent.

The poll was taken during a Fidelity Traders Summit in Seattle, WA on Aug. 27, 2013 that included more than 4,000 in-person and webcast attendees who are Fidelity customers. On average, more than 1,200 attendees responded to each poll question, and the majority of the respondents are active investors, trading 36 or more times per year.

Key findings of the poll include:

Strong Markets Expected -- Three-quarters (77 percent) of respondents expect the S&P 500® Index to stay within 100 points or rise more than 100 points to at least 1,758 at the end of 2013. This represents a 6 percent rise from when the poll was taken.

Equities in Favor -- When asked where they’d put their next investing dollar, 7 out of 10 (71 percent) said into equities. Cash (12 percent) and Real Estate (7 percent) round out the top three.

Higher Returns Expected: Active investors’ expectations for a personal rate of return is higher than a year ago, with 73 percent expecting at least a 6 percent return, essentially matching the anticipated market gains. In a similar poll in Sept. 2012, only 63 percent had the same expectation.

Confidence, Though Lower, Still Dominates: The number of active investors believing they will
match or beat the S&P 500 Index in the next 12 months is a strong majority (83 percent), but it represents an historic low over four years and 11 polls.

Keeping Pace: Against a backdrop of 20 percent market gains in the last twelve months, 48 percent active investors reported they matched or beat the S&P 500 Index’s performance during that time.

Industry Sectors in Favor: Active investors are most bullish about the following industry sectors: Health Care (34 percent), Information Technology (21 percent) and Energy (20 percent)

To Hedge or Not to Hedge: A full 43 percent of those polled do not employ a hedging strategy for their equity portfolio. Of those who do, the top three instruments are bonds (35 percent), options (31 percent) and conditional orders (20 percent).

What of Rising Bond Rates? Twenty percent saw the recent rise in bond prices as an opportunity, 39 percent were neutral and 41 percent did not like it due to losses.

If You Build a Strategy, Use It: Fifty-seven percent report they have a defined trading strategy, and of those, 59 percent stick to it, and 41 percent only use the strategy sometimes.

“When the markets are on the move with influences like global conflicts, rising rates and corporate earnings, it’s helpful to take the pulse of experienced investors to understand how they’re weathering it and what their expectations are for the future,” said Ram Subramaniam, president of Fidelity’s retail brokerage business. “It’s great to see investors have faith in the markets and plan more equity participation, but to give themselves a better chance of beating the anticipated market growth, they should take full advantage of their brokerage firm’s education and tools, as well as consider consulting with a financial professional.”

Investors interested in learning more about Fidelity’s retail brokerage offering can find information about the broad investment choices, comprehensive research, and advanced trading tools and services at And for the latest perspectives from Fidelity for active traders, visit Fidelity Viewpoints®.

About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $4.3 trillion, including managed assets of $1.8 trillion, as of July 31, 2013. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit

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