From Inman News Features
Real estate continues to trump stocks as an attractive investment, according to E*Trade Group’s latest survey tracking investor sentiment about the economy, the market and personal finances.
The quarterly survey found that 57 percent of customers said they find real estate investments more viable than stocks.
“Investors are maintaining a solid interest in real estate, holding on to their current investments and maximizing their tax alternatives to deliver the best possible return given today’s economically challenging times,” said E*Trade CEO Christos M. Cotsakos.
However, 50 percent of responding investors believe that residential real estate is overvalued and there is a real estate “bubble” waiting to burst.
Eighty-four percent of respondents thought it was likely that the United States will go to war with Iraq, and 54 percent believed a war will have a negative impact on the U.S. economy. But 46 percent of respondents did not feel that a war would have any impact on their investment behavior.
“The financial markets continue to struggle while near-term investor confidence remains flat, marked by geopolitical, economic and market uncertainty,” said Cotsakos.
Active traders were significantly more optimistic about the general economy and the stock market recovery than other customer segments, with 53 percent believing that the economy will improve in the next 12 months or sooner, and 47 percent believing stock market conditions will improve.
The majority of respondents, 54 percent, also said they believe Republican control of the Senate and House of Representatives will have a positive effect on economic recovery.
The survey was conducted with a sample size of 1,800 participants via the Internet by Walker Information, a global survey research firm.