2025 will be a retail investment year according to many surveys conducted in the last quarter of 2024. Investors are making several commitments to invest in markets that have the potential to grow in 2025.
eToro’s Bret Kenwell analyzes a survey of 1,000 retail investors in the United States. 61% of respondents stated that the “bull market will persist.”
According to eToro’s Retail Investor Report, US retail investors ranked Amazon first, with 12% selecting the online retailer.
Additionally, confidence in AI stocks is also high: 16% anticipate they will continue their substantial rise through 2025, while 42% anticipate further incremental increases in their stock prices.
Analyst Bret Kenwell said: “Technology often serves as a leading group for US stocks, and with mega-cap and AI-related stocks gaining strong momentum as the fourth quarter draws to a close, investors Retailers expect that to continue in 2025. “How the markets have performed and how well these companies are doing, it’s no surprise that investors are optimistic.”
eToro Ranks 7 Magnificent
According to the survey, ‘Magnificent 7’ stocks are most likely to increase their investments in 2025. US retail investors ranked Amazon first. Amazon’s stock price has enjoyed some good momentum this holiday season.
Tesla came in second with 11%. Tesla’s Elon Musk has made great strides in the AI sector. Being in the new government administration, its businesses are expected to do well next year, including Tesla.
Apple followed closely, with 10% of retail investors supporting the company. Right behind them is Nvidia, which has 8%. Alphabet and Microsoft were at 7%, and Meta at 6% made up the rest of the list.
Retail investors were generally more cautious when asked about the overall performance of the Magnificent 7 in 2025. Only 16% of them anticipated that they would significantly outperform the market, while 32% believed they would only slightly outperform.
Notably, the data also emphasized gender disparities. Women were more inclined to increase their investments in Amazon in 2025, while men preferred Nvidia.
Cryptocurrencies Gain More Traction Than Stocks
The re-election of Donald Trump, a pro-crypto president, has inspired substantial adjustments to retail investors’ portfolios. 55% of investors have adjusted their strategies.
Of those planning adjustments, 66% are increasing their allocation to cryptocurrencies, a more popular choice than 50% of US stocks. Bret Kenwell explained that Crypto has been doing very well. He further noted that Bitcoin has doubled in price for two consecutive years.
Bret Kenwell said: “Retail investors are demonstrating a deep understanding of market dynamics and the implications of the macroeconomic and political environment. Given Donald Trump’s pro-crypto stance, the preference toward cryptoassets shows investors’ expectation that the cryptocurrency rally will persist into the new year.”
On the other hand, 55% of respondents intend to improve their cash holdings, which remain the most frequently held asset class, at 79%.
Bret Kenwell added: “At the same time, increasing cash allocations is a strategic move, as having cash on hand puts investors in a position to take advantage of a pullback in stocks or cryptocurrencies amid a strong economic backdrop. which highlights discipline among retail investors.”
Retail sales final stretch of 2024
The Commerce Department reported Wednesday that U.S. retail sales rose once again last month. This follows record spending over Thanksgiving, suggesting consumer strength will persist into the final months of the year.
🎉 The final stretch of 2024 is already here.
Markets tend to be quiet this time of year, but $SNOW is gaining attention after a bullish move. Can he maintain the momentum?
Analyst @BretKenwell analyzes the outlook for this week and beyond.
Check it out 👉 https://t.co/yat2jawfOr pic.twitter.com/EknPTCpUoG
– eToro US (@eToroUS) December 23, 2024
Reports show sales rose 0.7% to $724.6 billion, beating the consensus prediction of a 0.5% rise on Wall Street. Additionally, October’s reading was revised upwards, resulting in a final gain of 0.5%.
Elizabeth Renter, senior economist at NerdWallet, said: “US retail spending continues to grow at a healthy pace, indicating consumer confidence as we approach the holiday season.” […] Spending on automobiles and online/out-of-store retailers grew more strongly in November.”
A step-by-step system to kick-start your Web3 career and land high-paying crypto jobs in 90 days.
