Optimistic And Cash-Heavy, Retail Investors Have Big Plans For 2024

Optimistic And Cash-Heavy, Retail Investors Have Big Plans For 2024
Carl Hazeley

about 2 months ago3 mins

  • 73% of retail investors surveyed said they believe global stock markets will be higher in 12 months.

  • 40% said they’re planning to invest more in the next three months.

  • 48% plan to invest between $10,000 and $100,000 in the next 12 months.

  • 73% prefer to self-manage their portfolios, and 63% use more than one app or service to do so.

73% of retail investors surveyed said they believe global stock markets will be higher in 12 months.

40% said they’re planning to invest more in the next three months.

48% plan to invest between $10,000 and $100,000 in the next 12 months.

73% prefer to self-manage their portfolios, and 63% use more than one app or service to do so.

Mentioned in story

If you’ve ever wanted to sneak a peek at what other retail investors are doing, here’s your latest chance to do so. We asked thousands of you across our modern investing community how you’re planning to invest in the first quarter and what you’re predicting for the year ahead. Our exclusive data reveals that you’re sitting on a lot more cash right now – and you’re more optimistic than ever. So if 2024 offers stability, it could be a record year for retail investor participation. Here’s a look at our latest findings…

You’re giving glass-half-full energy.

The Finimize Index tracks retail investor sentiment across our global community every quarter. In our latest survey, 73% of you said you expect global stock markets to be higher a year from now – that’s the highest figure since the Modern Investor Pulse began in December 2021.

Modern Investor Pulse

Q: Do you think global stock markets will be higher 12 months from now? Source: Finimize Modern Investor Pulse.

You’ve got $5,000-$100,000 to invest in 2024.

Half of you said you’re holding onto between $5,000 and $100,000 that you plan to invest in the next 12 months, with a further 12% planning to invest over $100,000. That’s a notable increase compared to the previous survey when 42% had $5,000-$100,000 on hand, and a further 6% had over $100,000 to invest.

Modern Investor Pulse

Q: How much cash do you currently have that you plan to invest in the next 12 months?

Part of the reason for your high cash balances has been the geopolitical and macroeconomic uncertainty offered up by 2023. Indeed, almost two-thirds said it’d kept you from investing cash you’d earmarked for markets.

You’re betting on stocks and ETFs.

The majority of you are still eyeing up stocks and ETFs as the central focus for this year, and tech stocks remain a firm favorite with Microsoft taking the lead as the top stock pick (36%), closely followed by Apple (34%).

Modern Investor Pulse

Q: Where do you plan to invest most of your surplus income over the next 6-12 months?

That’s perhaps no surprise given the positive US stock market momentum in 2023, helped by the continued wave of excitement around artificial intelligence and tech companies, the US economy proving more resilient than expected, and a rising expectation that interest rates will be cut as soon as early 2024.

You’re more positive on crypto.

Cryptocurrencies have increased in popularity, with 23% of you planning to invest in the digital asset space in the next six to 12 months, up from 18% last quarter. And that’s coincided with increased optimism about bitcoin’s prospects: while a quarter ago, you were split roughly down the middle about whether the OG cryptocurrency would be higher in a year, 56% now expect to see its price rise over the next 12 months.

Renewed crypto optimism was likely down to interest rate expectations and regulation. If key central bank interest rates begin to fall in 2024, that would boost riskier assets like bitcoin. And the regulatory approval of bitcoin spot ETFs (greenlighted just this week) would positively impact crypto accessibility for both institutional and retail investors and could therefore drive an increase in demand.

And here's why this year could smash some records.

Almost 80% of you said you expect key interest rates to either hold steady (35%) or decrease (43%) in the next 12 months, which – all else being equal – would likely be a boost to stock markets. And your optimism about global stock markets is at a record high, too.

Taken together, then, a benign to slightly encouraging big-picture economic environment could be all that’s needed for you to push money back into markets, unleashing your pent-up cash piles from an uncertain 2023 and giving you the confidence to keep investing through 2024.

“2023 was notable for its instability, and we saw experienced retail investors taking a more cautious approach to their investments, keeping hold of surplus cash. However, what we can see is that as the market stabilizes, they’re planning to invest more.”

– Max Rofagha, Founder & CEO of Finimize

“2023 was the year of surprises for both professional and retail investors, given that the much-predicted recession failed to arrive. Now that central banks appear to be on a glide path to cutting rates, we can look forward cautiously to a period of better economic growth that should support global stock markets in the first half of the year. Having seen such a tech-driven rally, perhaps 2024 will see other sectors play catch-up too.”

– Chris Beauchamp, Head of Market Analysis, IG

For more detail and analysis, check out the full report.

Finimize

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Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

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