Boston, October 17, 2012 – A new report from Aite Group explores overall buy-side and retail investor sentiment toward the U.S. equities market. Based on Aite Group surveys of 645 retail investors and 22 asset managers and hedge funds, the report also provides insight into the groups’ views on key trends and concerns shaping their overall behaviors.
Over the last four years, the U.S. equities market has been marred by what appears to be a never-ending series of mishaps and fraud that has directly challenged the overall confidence of participating investors, institutional and retail alike. Institutional firms continue to struggle with an increasingly complex market structure, and the ultimate interests and protection of retail investors have topped global regulators’ agenda for future regulatory rule changes. With market and regulatory uncertainty continuing and the U.S. equities market experiencing its third consecutive year of volume decline, much has been debated about whether the U.S. equities market can recapture its former glory.
“Buy-side sentiment toward market completion is positive, but concerns exist around regulatory uncertainty, market volatility, and high frequency trading in the United States and Europe,” says Sang Lee, managing partner with Aite Group and co-author of this report.
“A key concern for both institutional and retail investors, market volatility is certainly no fictional monster in the closet,” adds Danielle Tierney, analyst with Aite Group and co-author of this report. “While volatility has dropped since the unprecedented spike in Q4 2008, the market has never really returned to pre-crisis levels.”
This 26-page Impact Note contains 26 figures and two tables. Clients of Aite Group’s Institutional Securities & Investments service can download the report.