eToro Survey: Retail Investors Regain Confidence in the US Market
According to the latest survey from eToro, it seems that retail investors are feeling optimistic again about the US market. They are re-entering the market, increasing portfolio exposure to the highest level in history. Interestingly, this is happening even as technology stocks start to slow down.
Good news for the US economy: retail investors are back in action. After two quarters of declining interest, the latest survey from forex broker eToro shows a strong recovery in investor confidence. The Retail Investor Beat survey, involving 10,000 investors in 12 countries, showed that the US is now considered the market with the best potential for long-term returns. This positive sentiment is reflected in investor portfolios.
US assets are now owned by 43% of investors, the highest percentage recorded since forex broker eToro began tracking this data in 2023. This shift is a stark contrast to earlier in the year when economic and political uncertainty drove capital towards Europe and emerging markets. According to Lale Akoner, Global Market Strategist at the social trading brokerage, this is a clear sign that confidence in the resilience of the US economy has recovered. "The tide is turning, and the US is once again becoming a center of global investment," Akoner said.
Interestingly, despite the increasing demand for the US market, the survey shows that investors are becoming more cautious about their exposure to major technology stocks such as Tesla, Nvidia, and Apple. This is not because they have lost confidence in these companies; rather, it is a recognition of the risks of excessive concentration in their portfolios. Investors are seeking a better balance to protect themselves from potential losses.
The survey also highlights the ongoing strength of the US dollar. Despite recent weakness, 83% of investors are confident that the US dollar will remain the global reserve currency for the coming decade. This reflects the perception that the US remains a powerful engine of growth, although investors continue to diversify their portfolios to manage risk.
As reported in previous forex broker news, from a regional perspective, eToro's survey also highlights strong local market support in the UAE, where 85% of retail investors have put their funds into local stocks.