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U.S. investors hold firm and remain confident amid stock market selloff

By on July 7, 2022 0

Two in three investors cite inflation as the biggest investment risk

  • 65% of US investors held on to their investments in response to recent stock market selloffs
  • 66% of survey respondents say the top external risk to investing over the next three months is inflation
  • More than half (52%) of investors say their primary investment goal is to provide long-term security

HOBOKEN, NJ, July 7, 2022 /PRNewswire/ –U.S. retail investors remain resilient despite market selloffs and looming recession fears, according to new data from eToro. The social investment network’s latest “Retail Investor Beat” reveals that two-thirds of US investors (65%) kept their investments stable during the recent stock market sell-off.

Despite growing concerns about inflation, investors remain
Inflation affects almost every aspect of daily life and is a major concern for US investors. When asked what would pose the greatest external risk to investments over the next three months, 66% of respondents noted a rise in inflation followed by the state of the global economy (39%) and international conflicts (34%). Despite these concerns, however, US investors remain optimistic; more than two in three investors (69%) are confident in their current investments.

In light of recent market volatility, the survey data also revealed a shift in focus towards cleantech as a long-term investment strategy. Asked which sectors will present the best investment buying opportunity over the next three months, 40% of respondents said technology (electronics manufacturers, software developers and IT companies) and 38% energy ( oil and gas exploration and production companies).

eToro investment analyst in the United States, Callie Coxcomments, “Investors today face a perfect storm of setbacks, including lingering market uncertainty, soaring inflation, and an overall increase in the cost of living and housing. Despite these factors, investors of all generations demonstrate a level of maturity and understanding and do not let emotions dictate important financial decisions.”

Young investors set their sights on financial independence
American investors think long term when it comes to financial planning. More than half (52%) of investors say their primary investment goal is to provide long-term security, followed by helping fund retirement alongside a pension (38%) and achieving financial independence (37%). For younger generations, financial independence is paramount. Forty-three percent of respondents aged 18-34 are investing to achieve financial independence, followed closely by long-term security (42%).

eToro investment analyst in the United States, Callie Coxcomments, “For many young investors, this is their first time navigating a bear market. Managing risk for the first time, focusing on long-term goals and seeing the big picture is difficult, even for the most experienced investor. Data shows that young investors make smart and informed decisions. The best way to go is to be patient; history shows that investment portfolios can exit the bear market on fundamentals. stronger.”

Despite ‘Crypto Winter’, Investors Still Show Interest in Digital Currencies
Investors are still confident in the future of crypto. When it comes to investment choices, currently one in three US investors (33%) invest in crypto-assets, compared to 54% in cash, 54% in domestic equities, and 38% in domestic bonds/fixed income. . 40% of investors believe Bitcoin presents the best investment opportunity over the next three months. Crypto investors are also demonstrating that they are thinking long term. More than half (55%) of crypto investors held on to their investments in response to the recent selloff in the crypto-asset market, with only 8% selling their investments.

Notes to Editors
Survey conducted by Appinio from 7 to June 17, 2022. Previous waves were conducted quarterly in collaboration with Opinium. A total of 10,000 retail investors sampled in 14 countries, 1,000 in each: UK, US, Germany, France, Australia and Spain. 500 in the following: Italy, Netherlands, Denmark, Norway, Sweden, Poland, Romaniaand 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.

About eToro
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