Capital.com survey finds 43% clients bullish on stocks,19% bearish

A survey of almost 1,700 global clients by European investment trading platform Capital.com has found that 42.6% stock traders are still maintaining a bullish outlook on the market for the rest of 2021.

The bullish optimism is based mostly on expectations that the ongoing COVID-19 vaccination programmes across nations and the corresponding reopening of economies will lead to a rebound in global growth.

This view was supported by 71.3% of the participants in the Capital.com poll, the company said. A pickup in international travel, an employment boom and increased fiscal stimulus in major economies were also cited as fuelling positive sentiment in equities.

Almost 39% of those surveyed were ‘neutral’ on the market outlook, while 18.5% expected equities to decline, according to Capital.com.

The threat of fresh COVID-related lockdowns and the prospect of higher interest rates were seen as the biggest risks to the stock market. Some traders were also concerned about the risk of international conflict, according to the statement.

Mixed outlook

“The economic outlook is mixed at the moment, and this sentiment seems to be reflected among our clients,” said David Jones, Capital.com’s chief market strategist.

“While stocks have climbed recently, as economies emerge from the pandemic and consumer confidence grows, there are also ominous signs such as rising inflation and concerns about the potential of the delta variant to plunge us back into lockdown,” he added.

Capital.com surveyed its global customer base between 14 and 20 June 2021, receiving 1,677 email responses in total.

When asked where they would likely invest over the next six months, 63.2% of survey respondents said they’d be investing in the Nasdaq, which is largely pegged to the booming US technology sector.

By comparison, only 19.9% said they’d be investing in UK technology stocks. About 27% of the participants said they’d also invest in hospitality, leisure and travel stocks.

Techs appeal

Said Jones: “While certain sections of the economy are highly vulnerable to potential further lockdowns, other sectors are highly resilient.

“In particular, the US tech sector has boomed recently, as people around the world have switched to both remote working and remote retail, supported by US tech giants and software.

“Even as economies reopen, it seems many of the culture changes ushered in by the pandemic – such as working from home and online retail growth – are here to stay. We see this resilience reflected in the ongoing appeal of the Nasdaq.”

Capital.com enables clients to trade derivatives of over 3,000 of the world’s most popular markets through its web and mobile platforms. The company has clients in more than 180 countries, with offices located in the UK, Gibraltar, Singapore, Australia and Cyprus.

In 2020, the company reported a 700% growth in its client base, making it one of Europe’s fastest-growing investment-trading platforms, with more than two million customers.