The latest Retail
Investor Beat Survey by eToro, a social trading platform, found that while 64%
of retail inventors held on to their investments, 28% bought the dip during the
recent stock market sell off.
Only 8% sold their
investment during the period, according to the quarterly survey based on a sample of 10,000 retail
investors.
eToro said the survey was conducted between 7-17 June 2022 across 14 countries.
According to Ben
Laidler, eToro’s Global Market Strategist, the majority of retail investors
used the drop in prices to bolster their portfolios for long-term gain.
As a result, the survey
said, retail investors increased their portfolio exposure to commodities by
17%, crypto by 16%, domestic equities by 16% and cash by 15%.
Other portfolio increases were: foreign equities (13%), domestic bonds (12%), foreign bonds (9%),
alternatives (13%) and currencies (9%).
On the contrary, the social trading platform said retail investors’ confidence in their investments has been sliding,
falling from 83% in the second quarter of 2021 to 72% as at the end of last
month.
“Despite these risks,
almost half (48%) of respondents plan to invest the same amount of money over
the next three months and 30% expect to invest more,” eToro said.
Stock Market Sell-Off
A stock market sell-off
happens when stock prices drop suddenly over a daily, weekly, or monthly
period.
In June, Wall Street saw
its worst bear market since March 2020.
The Standard and Poor’s 500 index
declined by almost 6%. The index dropped by over 13% between January and April. The Dow Jones Industrial
Average (DJIA) also slumped by about 5% in June.
These came on the heels
of rising inflation and efforts by authorities to stem the tide.
The US Federal Reserve, for instance, hiked its benchmark interest rate by 0.75 percentage point. This is said to be
the biggest increase since 1994.
The latest Retail
Investor Beat Survey by eToro, a social trading platform, found that while 64%
of retail inventors held on to their investments, 28% bought the dip during the
recent stock market sell off.
Only 8% sold their
investment during the period, according to the quarterly survey based on a sample of 10,000 retail
investors.
eToro said the survey was conducted between 7-17 June 2022 across 14 countries.
According to Ben
Laidler, eToro’s Global Market Strategist, the majority of retail investors
used the drop in prices to bolster their portfolios for long-term gain.
As a result, the survey
said, retail investors increased their portfolio exposure to commodities by
17%, crypto by 16%, domestic equities by 16% and cash by 15%.
Other portfolio increases were: foreign equities (13%), domestic bonds (12%), foreign bonds (9%),
alternatives (13%) and currencies (9%).
On the contrary, the social trading platform said retail investors’ confidence in their investments has been sliding,
falling from 83% in the second quarter of 2021 to 72% as at the end of last
month.
“Despite these risks,
almost half (48%) of respondents plan to invest the same amount of money over
the next three months and 30% expect to invest more,” eToro said.
Stock Market Sell-Off
A stock market sell-off
happens when stock prices drop suddenly over a daily, weekly, or monthly
period.
In June, Wall Street saw
its worst bear market since March 2020.
The Standard and Poor’s 500 index
declined by almost 6%. The index dropped by over 13% between January and April. The Dow Jones Industrial
Average (DJIA) also slumped by about 5% in June.
These came on the heels
of rising inflation and efforts by authorities to stem the tide.
The US Federal Reserve, for instance, hiked its benchmark interest rate by 0.75 percentage point. This is said to be
the biggest increase since 1994.
