In 2025, retail investors are projected to make significant investments in markets with potential growth. A survey conducted on 1,000 retail investors in the United States revealed that 61% believe that the bull market will persist. This optimism is reflected in their preferences, as Amazon was ranked as the top choice for investment by 12% of respondents. Additionally, there is strong confidence in AI stocks, with 16% expecting substantial increases and 42% anticipating incremental growth in share prices.
Tech companies, especially mega-cap and AI-related stocks, are expected to continue their upward momentum in the coming year. The ‘Magnificent 7′ equities, including Amazon, Tesla, Apple, Nvidia, Alphabet, Microsoft, and Meta, are likely to attract increased investments in 2025. Tesla, led by Elon Musk, is gaining traction in the AI sector, while Amazon’s share price has seen a boost during the holiday season.
Amidst these positive projections, gender disparities are also prevalent. Women are more inclined to invest in Amazon, while men prefer Nvidia. Moreover, the re-election of Donald Trump, a pro-crypto president, has led to significant adjustments in retail investors’ portfolios. 66% of investors are increasing their allocation to crypto, surpassing the 50% planning to increase US stock investments. Bret Kenwell emphasized the strong performance of crypto assets and the doubling of Bitcoin’s price for two consecutive years.
Retail sales have also shown resilience, with a 0.7% increase to $724.6 billion reported in November. Consumer spending on autos and online retailers has grown robustly, indicating confidence as the holiday season approaches. With the final stretch of 2024 underway, markets are relatively quiet, but attention is drawn to companies like $SNOW, which are showing bullish momentum. Analysts are optimistic about the outlook for the coming weeks and beyond.
Overall, retail investors are demonstrating a keen understanding of market dynamics and are strategically adjusting their portfolios in anticipation of future trends. The preference for tech and AI-related stocks, as well as the increasing interest in cryptoassets, reflects a mix of optimism and cautiousness among investors. As the new year approaches, it will be interesting to see how these investments play out in the ever-evolving market landscape.
