Traders are feeling better about the markets than they have any time in the past two years with 56% reporting a bullish outlook for the next three months, up ten points from the second quarter. This is according to the latest Charles Schwab Trader Sentiment Survey, a quarterly survey that explores the outlooks, expectations and perspectives of traders at Charles Schwab.
Trader optimism extends beyond the short-term market outlook, with nearly six in ten traders feeling it is a good time to invest (up 11 points QoQ) and more than half saying they are better off financially compared to a year ago (up five points QoQ and seven points YoY). Additionally, most traders (69%) are confident in their decision-making.
Inflation, which was traders’ top concern last quarter, fell to third place while expectations for Fed rate cuts increased. Thirty-three percent of those surveyed expect rate cuts of 50 basis points or more in the remainder of the year, up from 25% of respondents predicting such cuts last quarter.
“Coming into the third quarter, traders reported higher levels of optimism about the markets and economy – and continued confidence in their own decision-making,” said James Kostulias, Head of Trading Services at Charles Schwab. “While we have seen increased market volatility since fielding our Q3 survey, we’re seeing some longer-term positivity among traders, and they are in a better position than ever before to manage volatility and market risks in a nuanced way thanks to the insights, education and professional-grade platforms and tools at their fingertips.”