According to the latest Retail Investor Beat (RIB) report by trading platform eToro, financial services stocks and cash holdings are currently leading preferences among U.S. retail investors.
Financial services stocks are held by 54% of surveyed investors, closely followed by technology stocks at 49%. Energy stocks (39%) and communications (36%) also garnered significant investor interest.
The appeal of financial services stocks has been boosted by value investors, attracted to companies like Charles Schwab (SCHW), U.S. Bancorp (USB), and PNC Financial Services (PNC), which are trading below their pre-crisis levels following last year’s regional banking turmoil.
Technology stocks remain a popular choice, particularly in the wake of advancements in generative artificial intelligence (AI) stocks, with Nvidia (NVDA) leading the charge. Despite concerns of missing out, 76% of investors are holding cash, while 22% express readiness to increase their technology investments.
Among younger investors aged 18-34, crypto assets are gaining traction, with 26% planning to expand their digital investment portfolios. However, these investors also exhibit caution, with 63% indicating increased wariness after experiencing market losses.
Inflation emerges as the primary concern for 30% of investors, despite recent easing, followed by worries about the economy (21%) and high interest rates (11%).
Bret Kenwell, U.S. investment analyst at eToro, noted, “With interest rates still elevated in the US, it’s no surprise that investors are leaning into cash assets for a solid risk-free return. Investors’ cash holdings put them in a good place to take advantage of market opportunities when they arise.”
As economic conditions evolve, U.S. retail investors are strategically positioning themselves to navigate uncertainties while seeking opportunities for growth in diverse sectors.
