Moomoo Users More Profitable and Confident on the Market in 2023, Stay Bullish for 2024

Rhea-AI Summary

Moomoo's 2023 fourth-quarter U.S. users survey shows increased profitability and confidence among users, with 40% reporting profits, compared to 15% in 2022. Despite the 2023 stock market rally, 58% of users who lost money traded more often. 45% of surveyed users are bullish for the 2024 market outlook, up from 21% at the beginning of the year.

Insights

Market Research Analyst

The reported increase in user profitability and confidence on the moomoo trading platform suggests a positive correlation between user engagement and market performance. The shift from a bearish to a bullish sentiment could be indicative of a broader investor optimism, potentially leading to increased market liquidity and higher trading volumes. The data showing that 40% of users have made money during a rally contrasts sharply with the previous year's 15%, underscoring the volatility and cyclical nature of the stock market.

It's noteworthy that the trading frequency among users who lost money also increased. This highlights the complex psychology of investing where investors may attempt to 'average down' or compensate for losses with increased activity, which can sometimes lead to higher risks. The survey's reflection of a more bullish outlook for 2024 could drive further market participation, but it's essential to monitor if this optimism aligns with broader economic indicators.

Financial Analyst

The survey's findings could have implications for market sentiment, as individual investor behavior is a component of market dynamics. The belief in a 'soft landing' scenario, despite the major bank runs earlier in 2023, points to a resilience in market confidence. This resilience, coupled with the positive user performance, might contribute to a self-reinforcing cycle of confidence and investment. However, investors should be cautious of confirmation bias and remain vigilant of macroeconomic factors that could affect market performance.

From an investment perspective, the increased bullishness presents both opportunities and risks. While it may signal a trend that could be capitalized on, it also raises questions about market overoptimism and the potential for corrective movements should the economic conditions not support the optimistic projections. The survey's sentiment should be weighed against economic fundamentals such as employment rates, inflation and GDP growth when considering investment decisions.

Economist

The user sentiment captured by the moomoo survey is a microcosm of investor sentiment that can have macroeconomic implications. The expectation to avert a recession and the bullish outlook for 2024 suggest that investors are pricing in a recovery or continued growth, which may influence consumer spending and investment. This optimism, if widespread, could contribute to economic stabilization or growth, as consumer and investor confidence are key drivers of economic activity.

However, the survey results should be interpreted with caution, as they represent the sentiments of a self-selecting group of platform users rather than the entire market. Moreover, while user sentiment is an important indicator, it is not infallible; historical market performance has shown that investor sentiment can sometimes diverge from economic reality. Therefore, it is crucial to consider these findings within the context of comprehensive economic data and trends.

JERSEY CITY, N.J., Feb. 5, 2024 /PRNewswire/ -- The intuitive investment and trading platform moomoo has recently completed a 2023 fourth-quarter U.S. users survey. Users have reported that they are more profitable and confident on average than six months ago and are trading more than a year ago, according to responses. Looking forward to 2024, users are more bullish on average and more expect the economy to avert a recession than they did in the last two surveys.

Amid a 2023 rally in the U.S. stock market, 40% of surveyed users report that they have made money compared to only 15% in 2022, a year when the S&P 500 lost 19.4%--its worst decline since 2008. The majority of users believe in a 2024 bull market and have been adding money to their trading accounts in 2023.

With user bullishness rising, along with the markets, 78% of surveyed users who made money in 2023 traded more, but surprisingly 58% of users who lost money also traded more often. For the 2024 market outlook, 45% of surveyed users are bullish compared to 39% at midyear and only 21% at the beginning of the year.

"More users are buying into the 'soft landing' economic scenario in the US. This has led to a more positive outlook on markets on average and increased stock trading," said Justin Zacks, Vice President of Strategy at Moomoo Technologies Inc. "Following several major bank runs in the spring, many of our users regained confidence in the second half of 2023 about the safety of their money in traditional banks."

26% of moomoo surveyed users don't expect a recession anytime soon compared to 18% of users at midyear. Some investors believe the 2023 rally, which has been led by technology stocks, still has some steam. Over 80% of respondents expect the tech sector to outperform in 2024.

To learn more about the moomoo third-quarter user survey results, please download our whitepaper.

About the Survey: The Q4 Moomoo Users survey was conducted in December 2023. The survey included around 1000 participants that are registered users of the moomoo app. The data shown in the survey represents the opinion of those surveyed, and may change based on market and other conditions. The survey results provided herein may not represent other customers' experience, and there is no guarantee of future performance or success and should also not be construed as investment advice. Experiences may differ than the ones represented here. Investing involves risks regardless of the strategy selected.

About moomoo

Moomoo is an investment and trading platform that empowers global investors with pro-grade, easy-to-use tools, data, and insights. It provides users with the necessary information and technology to make more informed investment decisions. Investors have access to advanced charting tools, technical analytics, and in-depth data. Moomoo grows with its users, cultivating a community where investors share, learn, and grow together in one place. Moomoo provides free access to investment courses, educational materials, and interactive events that any investor, at any level, can gain from. Users can join forum discussions, trending topics, and seminars to better their investment knowledge and insights.

The moomoo app is offered by Moomoo Technologies Inc. ("MTI") a company that is based in Palo Alto, California. The app is used globally in countries including the U.S., Singapore, Australia, Japan, Malaysia and Canada. MTI is not a broker-dealer and does not provide investment advice or recommendations. In the U.S., securities products and services are offered by Moomoo Financial Inc. ("MFI"), an SEC-registered broker-dealer and member FINRA/SIPC. MTI and MFI are indirect, wholly-owned subsidiaries of Futu Holdings Limited (Nasdaq: FUTU). FUTU has won multiple awards internationally, such as Fortune's 100 Fastest Growing Companies in 2022. Moomoo is not just your investment platform. It is your investment journey.

For more information, please visit moomoo's official website at www.moomoo.com or feel free to email: pr@us.moomoo.com.

Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo is a financial information and trading app offered by Moomoo Techonologies Inc. In the U.S., investment products and services on Moomoo are offered by Moomoo Financial Inc., Member FINRA/SIPC.

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SOURCE moomoo

FAQ

What is the outcome of moomoo's 2023 fourth-quarter U.S. users survey?

The survey shows increased profitability and confidence among users, with 40% reporting profits, compared to 15% in 2022.

How many surveyed users are bullish for the 2024 market outlook?

45% of surveyed users are bullish for the 2024 market outlook, up from 21% at the beginning of the year.

Who is the Vice President of Strategy at Moomoo Technologies Inc?

Justin Zacks is the Vice President of Strategy at Moomoo Technologies Inc.

What percentage of users reported profits in 2023?

40% of users reported profits in 2023, compared to 15% in 2022.

How many users traded more often despite losing money in 2023?

58% of users who lost money traded more often in 2023.

What was the S&P 500 decline in 2022?

The S&P 500 lost 19.4% in 2022, its worst decline since 2008.