Big Tech and cryptocurrencies could be in for a much-needed boost next year, a new survey has found, with retail investors eyeing the struggling assets as places to put their cash in the new year.
In a newly published poll of more than 2,300 retail investors across North America, Europe, and Asia, investment platform Finimize found that the vast majority of non-professional investors believed the worst of the current market turmoil would be over by mid-2023.
Financial markets have had a turbulent year, with economic uncertainty, interest rate hikes, and decades-high inflation weighing on investor sentiment.
The S&P 500 index has shed almost 20% of its value so far this year, while the tech-heavy Nasdaq Composite is down by more than 30%.
Despite the volatility, however, retail investors taking part in Finimize’s survey appeared unperturbed—just 1% were planning to sell off their assets, while 65% planned to continue investing. Almost a third of the survey’s respondents said they planned to invest more in 2023 than they did this year.
Meanwhile, one in five said they were building up their cash holdings with a view to “see what happens next.”
A third of those surveyed said they thought stock markets would reach their bottom within six months, with one in four predicting the low would come in three months’ time.
Around one in five either believed the bottom in equity markets had already passed or was being hit now.
Heavyweight investors have been divided on what’s next for stocks, but many have taken a gloomier outlook for the coming year, predicting a “volatile path” to nowhere, further market tumbles and a rude awakening for some traders.
Where retail investors want to put their money in 2023
Individual stocks were the preferred investment among the survey respondents, with 72% saying they planned to invest their surplus income into equities over the next six to 12 months.
Big Tech was the sector of choice for stock traders, with two-thirds saying they favored shares of tech giants like Apple, Microsoft, Google, Facebook and Netflix.
Large-cap tech firms faced a difficult year in 2022, with Big Tech stocks losing $400 billion by October and many of the tech giants being forced to carry out layoffs to cut costs.
Other tech stocks were the second most popular companies for retail investors looking to buy shares in 2023, followed by clean energy stocks.
Meanwhile, 60% of those who responded to the poll said they would invest in index funds over the next year.
Crypto, despite its downturn, also remained a popular asset among retail investors, according to the study, with a third of respondents saying they were planning to invest in cryptocurrencies even in the wake of the FTX disaster.
More than half of those polled said they believed Bitcoin’s price would be higher in 12 months’ time.
Bitcoin, like all crypto, is a risky and highly volatile investment. So far this year, it has lost more than 60% of its value as cryptocurrencies across the board suffered a widespread selloff that’s become known as the Crypto Winter.
“This data is proof that even in the current market environment, the majority are seeing volatility simply as part of the economic cycle thanks to access to information and growing experience with investing,” Max Rofagha, CEO of Finimize, said in a statement on Wednesday.
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