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Charles Schwab Managing Director Randy Frederick on a survey of how traders perceive the markets.
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While some investors are clinging to their cash you know -- -- warp my next guest is not about to sit on the sidelines.
He's running with the bulls and he's here to tell you why you might want to was well he's got some important data out joining me now in a Fox Business exclusive from Austin, Texas.
Is Randy Frederick managing director of active trading and derivatives at Charles swap and Randy I was looking at the numbers that you just -- from the latest trading survey.
And it showed that 51%.
Of the traders you surveyed were bullish.
Now aren't supposed to look at that was they run the other way you tell me why not.
Well -- not necessarily and the reason for that is that the kind of investors that we survey and these surveys are are what we call our active investors in that doesn't mean day traders or anything like that it just means people who are looking much more savvy.
Who spent a lot more time focusing on the markets who are watching financial news or -- financial media every day.
And are actively engaged in their markets in managing their portfolios.
And surprisingly these investors are not necessarily your typical Contra indicator which is what a lot of people look at retail investors as being.
You know that's an interesting point because.
We media tend to sometimes -- negative and we'll get a great piece of data to say yeah but yeah but so you're say that this is not -- -- but situation this is.
Hey wait a minute it isn't just the stampeding date trading heard these are veritable traders who trade what about 3036 times a year I'm sorry -- day or month had to had to break it down.
Well we look we classified down active traders at Schwab as those who do 36 time 36 -- a year or more so they can vary anywhere from about 36 straight -- -- to have been in some cases many thousand trades a year.
But we're not necessarily talking about -- -- may very well be a very small.
-- -- of them they may be a very small part of that group but overall we're just talking about people who are actively engaged in the market and who are as I said trading or at least watching the markets and and possibly entering orders on probably -- pretty regular basis what are they buying what are they going into it would start sectors like yes.
Well from a sector perspective.
We've had a buy rating or are outperform rating on and on technology for about two years now and in fact that sectors gone up about 30% during that period of time or even more.
That's been a sector that has all -- -- remain on the top for the last several of these surveys that we've done.
It was the highest rated sector from the perspective of these these surveyed clients last year and again this year so that's just the sector that they're focusing on mostly right now.
I think piling into the commodity trade we've got the crop report today -- people -- so excited about certain metals over the years soft commodities.
Well there's always an element of of there -- -- a -- that we're gonna that are gonna going to commodities and certainly Schwab we always advocate that you should have a well diversified portfolio that you should be.
Allocated across many asset classes and one of those classes will be commodities precious metals are a little bit different -- Because they're just what little bit more difficult to predict but.
But certainly there's nothing wrong especially for foray an investor with a sizable portfolio to have.
-- to have their assets allocated in several sectors in several asset classes and certainly commodities is a piece of that.
But that's not to say that when the commodities are hot that have been running -- and -- that.
Commodities are an area that your your typical equity investor.
Is not in in a big way and -- are people who trade in in the commodities markets but a lot of times they have a little bit more of a speculative.
Nature than an average investor might happen.
Randy Frederick of Charles Schwab thank you very much for coming on with us exclusively to tell us about what you found -- uranium -- -- people were active traders as he says.
Our bullish thanks very much good to see you.
