Why Retail Investors Are So Concerned

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Why Retail Investors Are So Concerned

Why Retail Investors Are So Concerned

A study conducted by eToro online trading platform finds individual investors are highly concerned over the strict monetary policy of the Federal Reserve and ongoing high inflation this year amid tech stocks are witnessing a heavy sell-off.Russia's invasion of Ukraine has simultaneously dampened the concerns.

About 8,500 individual investors were contracted by the Retail Investor Beat of eToro to talk about global issues. The top concern was inflation and nearly 50 percent of the total surveyed talked about it considering it to be the biggest threat to investments.

Over the period of the past couple of months the inflation has been like a drumbeat that has been getting louder and louder across the world including the United Kingdom, said Ben Laidler, global markets strategist at eToro.

He added further that just about three months ago it was not thought that inflation would go so high and simultaneously no one thought that the interest rates may rise.

The second big tension is the Russia-Ukraine tension. It is basically the concern of everyone. Even ahead of the conflict, the geopolitical tensions played a demoralizing role among retail investors. About a quarter of the surveyed investors said international conflict turn up a potential threat for them.

However, investors are usually suggested not to panic and opt for sell-offs. They are advised to ride on the situation.

It is predicted that reduced growth could be witnessed in 2022. The popular theme would be thecleantech theme while the robotics will see a strong dip. Moreover, a distinct demographic breakdown is taking place among retail investors.

Apart from all these, an army of young and new investors is filling up the gaps due to the ease of investing through mobile apps. Tech-savvy people have started saving money and investing in the market. The market may take about a year time to improve and reach a stable position. But another wave of the COVID-19 pandemic may lead to losing confidence.

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