The social investing network’s latest Retail Investor Beat reveals that only 46% of investors are positive about the outlook for the global economy. The last time eToro asked investors this question at the end of September, 47% said they were confident and in June, investors were split 50% on the question.
47% of investors think inflation poses the biggest external risk, up from just 38% in June, while one in four (26%) think international conflict is a major external risk, up from 23% in June. Yet the majority (56%) of retail investors are not repositioning their portfolios as a result, suggesting they are happy with their strategies despite this risk.
In the US, these sentiments are amplified with 64% of state-side investors feeling a lack of confidence in their economic futures. Despite this, however, 74% of US investors say they are optimistic about their investment prospects in 2022, and of all countries surveyed, the US presented the most bullish outlook for markets with 33% of respondents expecting a rally this year. What’s more, 30% of US investors plan to invest more and over half (52%) think their investments will improve over the next 12 months.
eToro’s US Markets Analyst, Callie Cox, comments:
“Retail investors still have faith in U.S. markets, even as they stare down a year of obstacles in inflation and Fed hikes. They’re experienced and educated, and they’ve watched a market that’s powered through many walls of worry over the past decade. While inflation and economic prospects may feel uneasy, they’re looking beyond the headlines when it comes to their portfolios.”
Optimism aside, US investors remain wary of inflation – the top risk for 54% of respondents, up from 47% in June – and a large majority (65%) expect interest rates to increase within a year. Additional US findings of note include:
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Source: Cryptocurrency - investing.com