10 Key Results of the 2023 Moomoo Trader Survey

At the beginning of 2023, we invited all mooers to fill in the Trader Survey. 2,397 mooers from the US, Singapore, and Australia responded to the online survey, which asked 13 questions about their trades in 2022 and insights on 2023. Mooers' insights into the investing landscape come at an apt time for the market, which is expected to experience increased volatility throughout 2023. Let's take a look at some of the findings!

Despite losses for many traders in 2022, the majority (69%) are undeterred and plan to trade more this year.

The stock market brought about eye-watering losses for traders in 2022. As we head into 2023, uncertainty hangs in the air, and a cautious outlook seems to be the course or many of the survey respondents. The result shows 45% are bearish, 35% are neutral, and 20% are bullish.

Mooers are bullish on the technology, energy/materials, and healthcare sectors in 2023. Despite technology's underperformance last year, respondents are optimistic about a turnaround. In addition, they have high expectations for energy, the best-performing sector in 2022.

Remember when meme stocks were all the rage last year? But over half of the respondents don't expect them to come back in 2023.

Three-quarters of respondents expect to employ "buy the dip" as one of their trading strategies. The strategy involves waiting for a sharp decline in a stock's price and then buying shares in hopes of a strong rebound.

Inflation can be controversial, with different traders holding different views on its impacts. The Majority of respondents view it as a problem, as it may lead to higher living costs and erode the purchasing power of people's savings. 38% see moderate levels of inflation as manageable.

Most mooers were either somewhat confident (58%) or very confident (23%) in meeting their investment goals. While the market's performance in 2022 may have shaken some people's confidence, its returns over the prior ten years have produced gains for many investment accounts. A solid job market and near-record-low unemployment may give investors a shot in the arm.

A critical economic question when forecasting the stock market in 2023 is whether the US will enter a recession as the Federal Reserve tries to cool inflation. Generally, mooers are negative about the economy going forward. The majority (51%) think a recession has already started, while only 7% don't expect a looming economic downturn.

The Federal Reserve sets interest rates in response to current economic conditions as it strives to achieve the dual mandate of maximum employment and price stability. As such, it's difficult to predict how high the Fed will hike interest rates in the future. The majority (40%) expect the rates to be 5.0%–5.5%.

Mooers expect inflation to remain a problem in 2023, with almost two-thirds of respondents anticipating no rate cuts from the Fed in the upcoming calendar year.

From the survey results, we can find respondents are optimistic about the stock market in 2023 but are still cautious in light of the potential risks posed by inflation and interest rate hikes. How about you?