A graph showing Apple’s stock price with a smartphone application.
Jaap Ariens | Nafoto | Getty Images
LONDON — Retail investors aren’t scared off by this year’s stock market sell-off.
In 2023, most retail investors plan to invest the same amount or more, despite the cost of living crisis, according to new research conducted by Finimize, a London-based investment insights platform. increase.
According to a Finimize survey, only 1% of retail traders said they plan to sell their investments in the new year, 65% plan to continue investing and 29% plan to add to their portfolios.
“This data proves that even in the current market environment, the majority view volatility as part of the economic cycle, thanks to their access to information and accumulated investment experience,” says Finimize. CEO Max Rofaga said in a press release Wednesday.
“Furthermore, it is clear that the retail investor narrative is changing. For example, previously the focus was on how a small number of day traders behaved.”
A survey of over 2,000 retail investors in Europe, Asia and the US found that more than 80% of retail investors believe the worst stock market crash will be over within six months. I was.
The majority of traders (72%) plan to support individual stocks next year, and 64% support big tech companies such as: apple, microsoft, Google When meta.
Meanwhile, 38% of retail investors plan to invest in cryptocurrencies even in the wake of the collapse of Sam Bankman-Fried’s FTX cryptocurrency exchange.
About 56% of traders believe Bitcoin will go higher, while 44% believe it will trade lower. Most retail investors (58%) would increase their investment in cryptocurrencies if regulation were tightened.
Arguably the biggest economic concern in retail is the cost of living crisis. Consumer budgets are constrained by high inflation, hurting stocks as the central bank raises interest rates to keep prices down.
More than half (55%) of retail investors say the rising cost of living is their top financial concern today. Rising interest rates follow closely behind, with 28% of traders citing this as their top concern.
The role of retail investors in influencing the market made headlines last year after a community of enthusiastic novices on Reddit and other social platforms boosted the US gaming retailer’s stock price. game stop.
Nonetheless, according to Finimize, so-called “memetic stocks” aren’t a focus for most retail investors, with 84% having never invested in memetic stocks.
“GameStop mania was a fleeting affair. Recent attempts to organize similar movements have struggled to gain traction,” Max Rothery, Finimize’s vice president of community, told CNBC. rice field.
“As the environment becomes more uncertain, retail investors are expected to continue investing, although trading volumes are expected to decline.”
The retail investment community is expected to account for 61% of all global assets under management by 2030, up from 52% in 2021, according to wealth management strategy consulting firm Indefi.
According to Finimize, there are over 1 million users worldwide. The company was acquired by asset management giant He Abrdn (formerly Standard Life Aberdeen) late last year.