Client Sentiment Survey Results – 4/12/13

Our latest sentiment survey was open from 4/12/13 to 4/19/13.  The Dorsey, Wright Polo Shirt Raffle continues to drive advisor participation, and we greatly appreciate your support!  This round, we had 57 advisors participate in the survey. If you believe, as we do, that markets are driven by supply and demand, client behavior is important.  We’re not asking what you think of the market—since most of our blog readers are financial advisors, we’re asking instead about the behavior of your clients.  Then we’re aggregating responses exclusively for our readership.  Your privacy will not be compromised in any way.

After the first 30 or so responses, the established pattern was simply magnified, so we are fairly comfortable about the statistical validity of our sample. Some statistical uncertainty this round comes from the fact that we only had four investors say that thier clients are more afraid of missing a stock upturn than being caught in a downdraft. Most of the responses were from the U.S., but we also had multiple advisors respond from at least two other countries. Let’s get down to an analysis of the data! Note: You can click on any of the charts to enlarge them.

Question 1. Based on their behavior, are your clients currently more afraid of: a) getting caught in a stock market downdraft, or b) missing a stock market upturn?

Chart 1: Greatest Fear.  From survey to survey, the S&P 500 rose slightly, and none of our indicators worked correctly.  This has to do with when we publish the survey (Friday) and when most people take the survey (Monday).  On that Monday, the S&P had a big down day and these results incorporate that move down.  The fear of downturn group rose from 71% to 74%.  The fear of missing upturn group fell from 29% to 26%.

Chart 2: Greatest Fear Spread. Another way to look at this data is to examine the spread between the two groups.  The spread rose from 42% to 47%.

Question 2. Based on their behavior, how would you rate your clients’ current appetite for risk?

Chart 3: Average Risk Appetite.  Average risk appetite dropped this round, from 3.08 to 2.85.

Chart 4: Risk Appetite Bell Curve.  This chart uses a bell curve to break out the percentage of respondents at each risk appetite level.  This round, over 50% of all respondents wanted a risk appetite of 3.

Chart 5: Risk appetite Bell Curve by Group.  The next three charts use cross-sectional data.  The chat plots the reported client risk appetite separately for the fear of downdraft and for the fear of missing upturn groups.  We can see the upturn group wants more risk, while the fear of downturn group is looking for less risk.

Chart 6: Average Risk Appetite by Group.  This round, both groups’ risk appetite fell lower.

Chart 7: Risk Appetite Spread.  This is a chart constructed from the data in Chart 6, where the average risk appetite of the downdraft group is subtracted from the average risk appetite of the missing upturn group.  The spread dropped this round.

From survey to survey, the S&P rose slightly.  However, the market fell steeply when most of our respondents were taking the survey, as evidenced by a sharp pullback in client sentiment.  All of the indicators showed a marked decrease in client sentiment.  However, this is to be expected somewhat, considering how great the first quarter was.  Let’s hope for a small pullback and a continued rally into spring.

No one can predict the future, as we all know, so instead of prognosticating, we will sit back and enjoy the ride.  A rigorously tested, systematic investment process provides a great deal of comfort for clients during these types of fearful, highly uncertain market environments.  Until next time, good trading and thank you for participating.

26 Responses to Client Sentiment Survey Results – 4/12/13

  1. Miguel says:

    Hi! I’ve been reading your website for a long time now and finally got the bravery to go ahead and give you a shout out from Austin Texas! Just wanted to tell you keep up the fantastic work!

  2. After I initially left a comment I seem to have clicked the -Notify
    me when new comments are added- checkbox and from now on whenever a comment is
    added I get four emails with the exact same comment. Is there
    an easy method you can remove me from that service? Thanks!


    Client Sentiment Survey Results – 4/12/13 • Systematic Relative Strength • Dorsey Wright Money Management Systematic Relative Strength

  4. Le prêt personnel pour automobile peut financer toutes les voitures même les voitures hybrides et les voitures de assortment.

  5. Good post. I learn something new and challenging on blogs I stumbleupon everyday.

    It’s always exciting to read content from other writers and practice a little something from other sites.

  6. Brigitte says:

    In other cases, a particular model of a car may be dropping
    from the market, or perhaps the rates for the vehicle are increasing.
    Whenever you go to a second or third dealership attempting to get approved, the dealer
    can see the banks and loan businesses that you have been sent to currently and have already been turned down. This
    way you know exactly what interest rate you should
    be paying.

  7. What’s Going down i am new to this, I stumbled
    upon this I have discovered It positively helpful and it has aided me
    out loads. I am hoping to give a contribution & help other customers like its aided me.
    Great job.

  8. I have read several just right stuff here. Certainly worth bookmarking
    for revisiting. I wonder how so much attempt you set to make any such magnificent informative

  9. says:

    Hi Chris, enjoyed it and simply read your report.
    I’m not completely old to forex and wish to do this full-time since I
    have have a newborn baby to aid today.

  10. Forex trading in India has been under key controversy on whether it is not or lawful.

  11. mode quality says:

    Stochastic oscillator (also referred to as Stochastics) is a momentum indicator mainly utilized for trading of securities.

  12. Stunningg story there. What ocxurred after?
    Good luck!

  13. Our accredited engineers as well as professionals are highly evaluated and trusted to guarantee yyou tthe finest locksmith service anywhere.

  14. Sehr guter Beitrag! Ich schaue mir sehr gerne Serien im Internet an. Vorallem mag ich Maxdome.

  15. Car Models says:

    I absolutely love your blog and find a lot of your post’s to be exactly I’m
    looking for. can you offer guest writers to write content
    for you personally? I wouldn’t mind publishing a post
    or elaborating on some of the subjects you write about
    here. Again, awesome site!

  16. I will drive real Unlimited Website TRAFFIC to
    your website ..

  17. If you desire to improve your knowledge simply keep visiting this site
    and be updated with the hottest information posted

  18. The spirit of scientific, moral health care is that we don’t press a therapy up until there
    excels evidence that it really works.

  19. This sort of further trading alternative will only
    turn out to be accessible to you when you’ve gotten a stay commerce positioned.

  20. Nice post. I was checking constantly this blog and I’m inspired!
    Very useful info specifically the remaining phase :) I maintain such info a
    lot. I used to be looking for this particular information for a very long time.
    Thank you and good luck.

  21. Alannah says:

    The turnkey franchise provider offers anything else, including.
    Sky-scrappers may also be just like banner ad campaigns, however the difference is tha they run vertically arohnd the web page.

    The easiest way is usually to only mail out the emails to users
    who may have requested inclusion with ann email subsciber lists,
    usually known as opt-in lists.

  22. Jamel says:

    Podéis descargar el juego Kick the Boss dos (17+) para los teléfonos Android
    completamente gratis de forma directa en este sitio.

  23. Estoy absolutamente conforme con que Nebraska es, sin duda, así
    como Born to run, el mejor disco de Springsteen.

  24. annuwebmasterr

    Client Sentiment Survey Results – 4/12/13 • Systematic Relative Strength • Dorsey Wright Money Management Systematic Relative Strength

  25. Thanks for sharing your thoughts on Internet Fiber Affaires.