HOBOKEN, NJ, January 20, 2022 /PRNewswire/ — Do-it-yourself investors are pessimistic about the outlook for the global economy as the recovery slows in many major economies, new data from eToro reveals.
The latest from the social investment network Retail investor beat reveals that only 46% of investors are positive about the outlook for the global economy. When eToro last posed this question to investors in late September, 47% said they were confident and by June investors were 50% split on the issue.
47% of investors think inflation is the biggest external risk, down from just 38% in June, while one in four (26%) think international conflicts are a major external risk, down from 23% in June. Yet the majority (56%) of retail investors are not repositioning their portfolios accordingly, suggesting they are happy with their strategies despite this risk.
In the United States, these sentiments are amplified, with 64% of investors in the United States feeling a lack of confidence in their economic future. Despite this, however, 74% of American investors say they are optimistic about their investment prospects in 2022, and of all the countries surveyed, the United States presented the most optimistic outlook for the markets with 33% of respondents. expecting a recovery this year. Additionally, 30% of US investors plan to invest more and more than half (52%) believe their investments will improve over the next 12 months.
eToro US Markets Analyst, Callie Cox, comments: “Retail investors still have confidence in US markets, even as they watch a year of headwinds to inflation and Fed hikes. They are experienced and educated, and they have watched a market that has gone through many walls of worry over the past decade. While inflation and the economic outlook may seem uncertain, they look beyond the headlines when it comes to their portfolios.”
Optimism aside, US investors remain cautious about inflation – the top risk for 54% of respondents, up from 47% in June – and a large majority (65%) expect interest rates to rise within a year. Other US discoveries of note include:
- 63% currently cite stocks as their largest portfolio of all assets.
- 46% are not sure what they would choose as their crypto investment of choice; highlighting a lack of education on the subject.
- 24% currently own meme stocks, up from 18% in June.
- 17% started investing in the past 2 years, i.e. since the start of the COVID-19 pandemic
Globally, investors are also confident that the slowing economic recovery will not affect their investments, the data shows. 80% of investors told eToro that they were confident about the performance of their portfolios.
Notes to Editors
Survey conducted by Opinium of November 30 – December 14, 2021. A total of 8,000 retail investors sampled across 12 countries – 1,000 in each: UK, US, Germany, France. 500 in the following: Italy, Spain, Netherlands, Denmark, Australia, Poland, Romania and the Czech Republic. Retail investors were defined as self-directed or advised and required to hold at least one investment product, including stocks, bonds, funds, investment ISAs or equivalent. They didn’t need to be eToro users.
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