eToro Q2 Retail Investor Beat: U.S. investors stay the course despite waning confidence in economy
Social investing network's quarterly survey finds international conflict, inflation top concerns for investors
- Just one in three Americans feel confident in the U.S. economy
- 55% of U.S. investors see inflation as the biggest external risk to investments
- 54% of investors did not reposition their portfolios to protect from external risks
HOBOKEN, N.J., April 13, 2022 /PRNewswire/ -- U.S. investors are feeling less confident in the global and U.S. economies, but are staying the course when it comes to their investment strategy, according to the Q2 Retail Investor Beat from social investing network, eToro,
Roughly one in three (35%) respondents said they feel confident in the US economy, down from 45% the previous quarter. When it comes to the global economy, 24% of respondents said they feel confident, down from 36% the previous quarter.
eToro US Investment Analyst, Callie Cox, comments: "The world is reeling from the scale of the humanitarian crisis in Ukraine. While we try to process it from an emotional level, there's also several layers to what's happening from an investment standpoint as well. The situation is fueling higher inflation, greater market uncertainty and decreased confidence in the US and global economies."
Fifty five percent of investors think inflation will pose the biggest external risk to their investments over the next three months. Top of mind for investors are the tragic events unfolding in Ukraine. Nearly half (45%) of investors see international conflict as the biggest external risk to investments in the next three months, a large jump from just 18% the quarter before.
While economic uncertainty creates a difficult environment for investors, 66% of respondents say they still feel confident in their investments, with 54% of investors noting they did not reposition their portfolios to protect from external risk.
eToro US Investment Analyst, Callie Cox, comments: "Investors are doing exactly what they're supposed to in a time of volatility. Our data shows investors are becoming smarter and less reactionary to the news headlines. They're investing with long-term goals in mind and staying the course even in times of uncertainty."
While economic uncertainty can create a difficult environment for investors, over the next 12 months, one in three (31%) investors say they actually expect to invest more money. Investors are also becoming more comfortable with crypto. In the next 12 months, 31% of respondents say they plan to invest in crypto assets (e.g. bitcoin, ether) up from just 18% six months ago. Even baby boomers are warming up to the idea of crypto investing: Eleven percent of those aged 55 and over say they plan to invest in crypto in the coming year.
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Survey research conducted by Opinium from 10 to 23 March 2022. In total, 8,500 retail investors sampled across 12 countries, 1,000 in each: UK, US, Germany, France, Australia. 500 in the following: Italy, Spain, Netherlands, Denmark, Poland, Romania and the Czech Republic. Retail investors were defined as self-directed or advised and had to hold at least one investment product including shares, bonds, funds, investment ISAs or equivalent. They did not need to be eToro users.
eToro is a social investment network that empowers people to grow their knowledge and wealth as part of a global community of successful investors. eToro was founded in 2007 with the vision of opening up the global markets so that everyone can trade and invest in a simple and transparent way. Today, eToro is a global network of more than 27 million registered users who share their investment strategies; and anyone can follow the approaches of those who have been the most successful. Due to its simplicity users can easily
Securities trading is offered to customers by eToro USA Securities Inc ("eToro"), a broker dealer registered with the Securities and Exchange Commission (SEC). Investments are subject to market risk, including the possible loss of principal. Crypto Trading is offered via eToro USA LLC.
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