Online traders expect the equity market to bounce back, predicting an average return of 7.1 per cent on equities in 2002, according to research from broker Self Trade's optimism report.
The research, from 1,000 responses to an email survey conducted last March, showed that online traders were optimistic about the outlook for equities over the next 12 months with 45 per cent describing themselves as bullish, compared to 8 per cent bearish.
Online traders were classified into five types of investor, with 45 per cent describing themselves as all-rounders investing in a diverse range of shares, 18 per cent specialists following one or two sectors or companies and 16 per cent adventurous, looking for short-term opportunities for rapid growth.
Eleven per cent described themselves as passive investors, buying simple blue-chip investments which don't take much management and 9 per cent bought emerging stocks that were currently being recommended by the media.
The traders had an average 36 per cent of their holdings in equities and were most bullish about technological stocks, with 28 per cent bullish and 7 per cent very bullish about the technology sector.
Self Trade director Peter Boucher says: “It is god news that traders are so optimistic about the year ahead. Given the current economic market, where a 6 per cent return on equities would be a good performance, it would be fantastic if the predicted 7.1 per cent were truly reflective of what is to come.”