believe the worst will be over by mid-2023.
will back individual stocks, and many are standing by Big Tech (64%) even after mass layoffs.
plan to sell off their investments, more than half (65%) plan to keep investing, and almost a third (29%) plan to invest more despite the cost of living crisis.
plan to invest surplus income in crypto following the FTX scandal.
have never invested in a meme stock.
Retail investors are often characterized as meme stock fanatics who exclusively hang out on Reddit’s wall street bets forum. But that’s far from the truth: they’re smart, curious, and action-orientated global young professionals who make disposable income every month, and they know they should be doing something smart with that cash. 30% of Finimizers have been investing for more than years, while a substantial 8% only started this year. Either way, they use their communities and social networks to add to their knowledge on the go.
I started this year
I don't invest
Finimizers expect the market to bottom in the next six months, and 6% expect that low to last more than a year. Only 1% plan to sell off their investments, while 65% aim to keep investing – 20%, meanwhile, are building up cash and waiting to see what happens next. And despite numerous financial concerns (not least the cost of living crisis), nearly a third of respondents (29%) said they plan to invest more in 2023.
Has already passed
More than a year away
The majority of Finimizers (72%) plan to invest their extra income into stocks over the next six to 12 months, with 64% favoring Big Tech despite the sector’s workforce haemorrhages. Recent data suggests that retail investors bought the Big Tech dip, likely seeing the opportunity as a chance to snap up profitable firms for less.
They’re a brave bunch, Finimizers: 37% said they still plan to invest in digital assets after the FTX crash, and 56% believe the price of bitcoin will be higher in 12 months. There could be more where that came from, too: over half (57%) said they’d be more inclined to invest in crypto if it was more heavily regulated.
Unsure, watching closely to see how it unfolds
I've never invested in crypto so this doesn't concern me
Optimistic, this is just a blip
I don't think I'll be investing in crypto again after this
I don't know
Many Finimize community members have started exploring alternative asset classes, mainly in a bid to diversify their portfolios and snap up buzzy opportunities. Over a third (38%) see alternative assets as a fresh way to find returns, and almost half (47%) are planning to invest in alternatives next year.
Social media might be one of the easiest ways to gather information quickly, but investors have their wits about them. The World Economic Forum estimates that 53% of retail investors use social media during their investing process, but our survey shows that less than a quarter (23%) of retail investors truly trust social media platforms when making their investment decisions. So while it ranks highly as a source of information flow, investors tend to supplement those learnings with data from other sources. 68% prefer to check out financial media, even over banks, brokerages, or financial firms.
Retail investors are painted as easy targets for overly gamified trading platforms too, but it turns out they’re more than savvy about them. So while more transparency around the brokerage revenue model would help, modern investors say they’re wary of content released by brokers.
Retail investors are a growing force in capital markets. They are shifting their behaviors toward building wealth over time and becoming more sophisticated in their investing approach. They are displaying confidence in their skills, diversifying investments, and looking to explore new asset classes. By developing a better understanding of their motivations and needs, brands can uncover growth opportunities.
According to research from The World Economic Forum, 74% of retail investors would invest more if they had additional opportunities to learn about investing. Modern investors learn by doing, and seek advice and information from their communities. Being time-poor, retail investors need an education that serves their needs – always on, multi-channel, bite-sized, and easy to digest. Better-informed retail investors make better portfolio decisions, which lead to using more investment products and services.
Trust in the financial system and investing platforms is cited as one of the most common obstacles that hold people back from investing. In times of uncertainty, consumers turn to brands they trust. Helping retail investors navigate the markets will reward brands with a loyal customer base. This means meeting investors where they are and having conversations they want to have. Help retail investors discover your brand at the right time and empower them to take action by offering high-quality educational content that they value.