eToro Survey: US retail investors prefer financial stocks over tech stocks

Zhitong
2024.06.27 08:24
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According to the latest report from eToro, individual investors in the United States currently prefer financial services stocks and cash. 54% of investors hold financial services stocks, followed by technology stocks, energy stocks, and communication stocks. The banking industry's epidemic last year led to a decline in stock prices in the financial sector, attracting value investors. Some investors are concerned about missing opportunities, with 76% of U.S. investors preferring to hold cash, but 22% of investors also indicating an increase in investment in technology stocks. Cryptocurrencies are more popular among young investors, with 26% of investors planning to increase their digital investment portfolios. Inflation is seen as the biggest threat to investment portfolios. Young investors are more inclined to buy on dips, while older investors are more conservative

According to the latest report from the investment and trading platform eToro, financial services stocks and cash are currently favored by American retail investors. In the latest Retail Investor Beat (RIB) report released by the company on Wednesday, 54% of investors stated that they hold financial services stocks, followed by 49% for technology stocks, 39% for energy stocks, and 36% for communication stocks.

The regional banking crisis triggered by the collapse of Silicon Valley Bank (SIVBQ.US) last year has led to trading prices of financial industry stocks such as Charles Schwab (SCHW.US), U.S. Bancorp (USB.US), and PNC Financial Services (PNC.US) being below pre-crisis levels, attracting value investors.

Tech Sector Still Popular

Following the surge in tech stocks led by chipmaker NVIDIA (NVDA.US) in the artificial intelligence sector, technology stocks remain a target. However, the eToro report shows that some investors may be concerned about missing out, with 76% of American investors indicating a preference for holding cash, but 22% of investors stating they will increase their bets on tech stocks.

Cryptocurrencies are more popular among investors aged 18-34, with 26% of investors stating they will increase their digital investment portfolio compared to other assets. Among these young investors, some have experienced market downturns for the first time, with 63% stating they will be more cautious after losses, while among investors aged 55 and above, only 22% hold this view.

Inflation Seen as the Biggest Threat to Portfolios

Meanwhile, 43% of young investors stated a preference for buying on dips, compared to 16% among older investors. Despite recent easing of inflation in the United States, 30% of investors still see inflation as the biggest threat to their investment portfolios, followed by the economy (21%) and high interest rates (11%).

Brett Kenwell, eToro's U.S. investment analyst, said, "Given that interest rates in the U.S. remain high, it's not surprising that investors are leaning towards cash assets for steady risk-free returns." He added, "The cash holdings by investors put them in a favorable position to take advantage of market opportunities."

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