Among 10,000 participants, 11% plan to sell holdings in these companies for profit and reduced exposure.
Younger investors with 71% lead in portfolio adjustments compared to 37% of those over 55.
A noteworthy trend revealed by the latest Retail Investor
Beat (RIB) report from the trading and investment platform eToro that more than one in
four retail investors worldwide are planning to scale back their investments in
the prominent 'Magnificent 7' big tech stocks throughout 2024. The survey,
which encompassed insights from 10,000 retail investors across 13 countries,
highlighted a notable shift in investment strategies among respondents.
Reduced Exposure to Magnificent 7
According to the findings, 27% of retail investors are
intending to reduce their exposure to the Magnificent 7, which includes tech
giants such as Amazon, Apple, Microsoft, Meta, Tesla, Nvidia, and Alphabet. Of
this group, 11% explicitly stated their intention to sell some of their
holdings in these companies to secure profits and diminish their exposure to
these market-leading stocks. An additional 16% expressed plans to decrease the
amount of new capital they allocate to these tech behemoths in the coming
months.
Ben Laidler, eToro’s Global Markets Strategist, Source: LinkedIn
Commenting on the data, eToro’s Global Markets Strategist, Ben Laidler, said: “The much hoped-for cuts in global interest rates are set to
move from hope to reality over the summer as the Fed, ECB, and Bank of England
all take action. This will help to support economies, earnings growth, and
stock market valuations, while driving a major rotation away from the US and
big tech stocks towards more economically sensitive and cheaper areas, like
real estate, small caps, Europe and emerging markets.”
Contrast in Performance and Anticipated Market Shift
The RIB report underscored a contrast to the spectacular
performance witnessed by these seven companies over the previous 14 months,
during which their collective share prices soared by an impressive 90% since
January 2023. The anticipated market shift coincides with expectations of
forthcoming interest rate cuts in 2024, which are anticipated to stimulate a
resurgence in other, more cyclical sectors within the equity market.
Commenting on the findings, a spokesperson from eToro noted:
"As our latest Retail Investor Beat data illustrates, a significant number
of retail investors want to get ahead of this trend by adapting their
portfolios accordingly while also locking in some profits from the Magnificent
7 juggernauts."
The survey further revealed that the majority of global retail
investors are adjusting their investment strategies in response to the evolving
economic landscape, with 53% planning to rebalance their portfolios ahead of
predicted rate cuts and potential market rotations. Notably, younger investors
appear to be leading this charge, with 71% of investors aged 18-34 indicating
they have already adjusted or plan to rebalance their portfolios, compared to
only 37% of those over 55.
Among those intending to rebalance their portfolios, the
most common adjustment to asset allocation is an increase in equity investments
(48%), followed by reducing cash holdings (36%).
While a notable portion of investors is poised to scale back
investments in big tech in 2024, the data also revealed that many remain
steadfast in their commitment to the sector. Approximately 23% of respondents
indicated they plan to invest more in the Magnificent 7 this year compared to
last, with an additional 34% intending to maintain their current allocation to
these stocks.
Furthermore, when asked about their investment priorities
for 2024, global retail investors showed a strong inclination towards the
technology sector (18%), followed by financial services (12%). Notably, the
survey highlighted a growing interest in AI-related stocks, with the percentage
of investors holding stocks increasing from 27% to 31% in the first
quarter of 2024.
A noteworthy trend revealed by the latest Retail Investor
Beat (RIB) report from the trading and investment platform eToro that more than one in
four retail investors worldwide are planning to scale back their investments in
the prominent 'Magnificent 7' big tech stocks throughout 2024. The survey,
which encompassed insights from 10,000 retail investors across 13 countries,
highlighted a notable shift in investment strategies among respondents.
Reduced Exposure to Magnificent 7
According to the findings, 27% of retail investors are
intending to reduce their exposure to the Magnificent 7, which includes tech
giants such as Amazon, Apple, Microsoft, Meta, Tesla, Nvidia, and Alphabet. Of
this group, 11% explicitly stated their intention to sell some of their
holdings in these companies to secure profits and diminish their exposure to
these market-leading stocks. An additional 16% expressed plans to decrease the
amount of new capital they allocate to these tech behemoths in the coming
months.
Ben Laidler, eToro’s Global Markets Strategist, Source: LinkedIn
Commenting on the data, eToro’s Global Markets Strategist, Ben Laidler, said: “The much hoped-for cuts in global interest rates are set to
move from hope to reality over the summer as the Fed, ECB, and Bank of England
all take action. This will help to support economies, earnings growth, and
stock market valuations, while driving a major rotation away from the US and
big tech stocks towards more economically sensitive and cheaper areas, like
real estate, small caps, Europe and emerging markets.”
Contrast in Performance and Anticipated Market Shift
The RIB report underscored a contrast to the spectacular
performance witnessed by these seven companies over the previous 14 months,
during which their collective share prices soared by an impressive 90% since
January 2023. The anticipated market shift coincides with expectations of
forthcoming interest rate cuts in 2024, which are anticipated to stimulate a
resurgence in other, more cyclical sectors within the equity market.
Commenting on the findings, a spokesperson from eToro noted:
"As our latest Retail Investor Beat data illustrates, a significant number
of retail investors want to get ahead of this trend by adapting their
portfolios accordingly while also locking in some profits from the Magnificent
7 juggernauts."
The survey further revealed that the majority of global retail
investors are adjusting their investment strategies in response to the evolving
economic landscape, with 53% planning to rebalance their portfolios ahead of
predicted rate cuts and potential market rotations. Notably, younger investors
appear to be leading this charge, with 71% of investors aged 18-34 indicating
they have already adjusted or plan to rebalance their portfolios, compared to
only 37% of those over 55.
Among those intending to rebalance their portfolios, the
most common adjustment to asset allocation is an increase in equity investments
(48%), followed by reducing cash holdings (36%).
While a notable portion of investors is poised to scale back
investments in big tech in 2024, the data also revealed that many remain
steadfast in their commitment to the sector. Approximately 23% of respondents
indicated they plan to invest more in the Magnificent 7 this year compared to
last, with an additional 34% intending to maintain their current allocation to
these stocks.
Furthermore, when asked about their investment priorities
for 2024, global retail investors showed a strong inclination towards the
technology sector (18%), followed by financial services (12%). Notably, the
survey highlighted a growing interest in AI-related stocks, with the percentage
of investors holding stocks increasing from 27% to 31% in the first
quarter of 2024.
Tareq is a financial writer with 15 years of experience covering global markets. His work spans technical analysis, forex broker reviews, and market sentiment, with a focus on topics relevant to retail traders. He joined Finance Magnates in 2023.
At Finance Magnates, he serves as News Editor, covering retail forex and CFD brokers, cryptocurrency exchanges, fintech firms, and regulatory developments shaping the trading industry. He holds an Honours degree in Information Technology from Anfell College, London.
Education:
Honours degree Information Technology, Anfell College, London
FXBO Adds IDWise KYC And AML Tools To Broker CRM Stack
Featured Videos
Trading Tales: Stories from The Floor
Trading Tales: Stories from The Floor
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You can count on an unorthodox blend of candid perspectives and off-the-record tales that novices won’t get, and compliance won’t approve.
Attend at your own risk.
What to expect:
A deeper grasp of the evolution that Singapore's FX market has gone through
Practical wisdom on regional market peculiarities and FX careers
Unforgettable anecdotes that bring the Lion City's trading culture to life
Join seasoned financial markets professionals as they reflect on life spent in front of tickets, phones, and later screens, and the stories they’ve accumulated on sales and trading floors.
You can count on an unorthodox blend of candid perspectives and off-the-record tales that novices won’t get, and compliance won’t approve.
Attend at your own risk.
What to expect:
A deeper grasp of the evolution that Singapore's FX market has gone through
Practical wisdom on regional market peculiarities and FX careers
Unforgettable anecdotes that bring the Lion City's trading culture to life
Join seasoned financial markets professionals as they reflect on life spent in front of tickets, phones, and later screens, and the stories they’ve accumulated on sales and trading floors.
You can count on an unorthodox blend of candid perspectives and off-the-record tales that novices won’t get, and compliance won’t approve.
Attend at your own risk.
What to expect:
A deeper grasp of the evolution that Singapore's FX market has gone through
Practical wisdom on regional market peculiarities and FX careers
Unforgettable anecdotes that bring the Lion City's trading culture to life
Join seasoned financial markets professionals as they reflect on life spent in front of tickets, phones, and later screens, and the stories they’ve accumulated on sales and trading floors.
You can count on an unorthodox blend of candid perspectives and off-the-record tales that novices won’t get, and compliance won’t approve.
Attend at your own risk.
What to expect:
A deeper grasp of the evolution that Singapore's FX market has gone through
Practical wisdom on regional market peculiarities and FX careers
Unforgettable anecdotes that bring the Lion City's trading culture to life
Tokenized assets are all the rage across retail and institutional trading, but adoption might hit unique roadblocks for each.
This session gathers builders and architects practitioners to break down questions of infrastructure, ownership, and settlement that will define the next wave of asset tokenization.
Attendees will walk away with:
Institutional perspective on tokenized assets and what they unlock from bonds to debt
Understanding which paths are available for retail brokers and their compliance and product implications
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Tokenized assets are all the rage across retail and institutional trading, but adoption might hit unique roadblocks for each.
This session gathers builders and architects practitioners to break down questions of infrastructure, ownership, and settlement that will define the next wave of asset tokenization.
Attendees will walk away with:
Institutional perspective on tokenized assets and what they unlock from bonds to debt
Understanding which paths are available for retail brokers and their compliance and product implications
Insight into where APAC regulators stand on tokenized securities
Tokenized assets are all the rage across retail and institutional trading, but adoption might hit unique roadblocks for each.
This session gathers builders and architects practitioners to break down questions of infrastructure, ownership, and settlement that will define the next wave of asset tokenization.
Attendees will walk away with:
Institutional perspective on tokenized assets and what they unlock from bonds to debt
Understanding which paths are available for retail brokers and their compliance and product implications
Insight into where APAC regulators stand on tokenized securities
Tokenized assets are all the rage across retail and institutional trading, but adoption might hit unique roadblocks for each.
This session gathers builders and architects practitioners to break down questions of infrastructure, ownership, and settlement that will define the next wave of asset tokenization.
Attendees will walk away with:
Institutional perspective on tokenized assets and what they unlock from bonds to debt
Understanding which paths are available for retail brokers and their compliance and product implications
Insight into where APAC regulators stand on tokenized securities
Tokenized assets are all the rage across retail and institutional trading, but adoption might hit unique roadblocks for each.
This session gathers builders and architects practitioners to break down questions of infrastructure, ownership, and settlement that will define the next wave of asset tokenization.
Attendees will walk away with:
Institutional perspective on tokenized assets and what they unlock from bonds to debt
Understanding which paths are available for retail brokers and their compliance and product implications
Insight into where APAC regulators stand on tokenized securities
Tokenized assets are all the rage across retail and institutional trading, but adoption might hit unique roadblocks for each.
This session gathers builders and architects practitioners to break down questions of infrastructure, ownership, and settlement that will define the next wave of asset tokenization.
Attendees will walk away with:
Institutional perspective on tokenized assets and what they unlock from bonds to debt
Understanding which paths are available for retail brokers and their compliance and product implications
Insight into where APAC regulators stand on tokenized securities
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Join builders across the ecosystemto gain insight into the industry's current and future stance on prediction markets.
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Better understanding of how the CME, Plus500, and prediction platforms collaborate
Assessment of 2026’s expected volumes and new ‘event’ areas ripe for contracts
Cross-industry understanding of different strategies by brokers (co-opt, partner, buy)
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Join builders across the ecosystemto gain insight into the industry's current and future stance on prediction markets.
Attendees will walk away with:
Better understanding of how the CME, Plus500, and prediction platforms collaborate
Assessment of 2026’s expected volumes and new ‘event’ areas ripe for contracts
Cross-industry understanding of different strategies by brokers (co-opt, partner, buy)
As event contracts are set for ‘super-cycle’ growth in volumes and recognition, retail brokers simply can’t stay behind. But can regulated entities integrate a product that is awfully similar to betting?
Join builders across the ecosystemto gain insight into the industry's current and future stance on prediction markets.
Attendees will walk away with:
Better understanding of how the CME, Plus500, and prediction platforms collaborate
Assessment of 2026’s expected volumes and new ‘event’ areas ripe for contracts
Cross-industry understanding of different strategies by brokers (co-opt, partner, buy)
As event contracts are set for ‘super-cycle’ growth in volumes and recognition, retail brokers simply can’t stay behind. But can regulated entities integrate a product that is awfully similar to betting?
Join builders across the ecosystemto gain insight into the industry's current and future stance on prediction markets.
Attendees will walk away with:
Better understanding of how the CME, Plus500, and prediction platforms collaborate
Assessment of 2026’s expected volumes and new ‘event’ areas ripe for contracts
Cross-industry understanding of different strategies by brokers (co-opt, partner, buy)
As event contracts are set for ‘super-cycle’ growth in volumes and recognition, retail brokers simply can’t stay behind. But can regulated entities integrate a product that is awfully similar to betting?
Join builders across the ecosystemto gain insight into the industry's current and future stance on prediction markets.
Attendees will walk away with:
Better understanding of how the CME, Plus500, and prediction platforms collaborate
Assessment of 2026’s expected volumes and new ‘event’ areas ripe for contracts
Cross-industry understanding of different strategies by brokers (co-opt, partner, buy)
As event contracts are set for ‘super-cycle’ growth in volumes and recognition, retail brokers simply can’t stay behind. But can regulated entities integrate a product that is awfully similar to betting?
Join builders across the ecosystemto gain insight into the industry's current and future stance on prediction markets.
Attendees will walk away with:
Better understanding of how the CME, Plus500, and prediction platforms collaborate
Assessment of 2026’s expected volumes and new ‘event’ areas ripe for contracts
Cross-industry understanding of different strategies by brokers (co-opt, partner, buy)
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
Precious Insights: APAC's Bullion Market amid Record Volatility
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
The precious metals rally has challenged how brokers and LPs think about hedging, pricing, and physical delivery. But with regional banks eyeing physical gold retail and bullion brokers across Southeast Asia harnessing new tech, volatility is not only in 'safe havens'.
This session gathers practitioners from across the bullion ecosystem to unpack what the rally means on the ground in APAC.
Attendees will walk away with:
Insight into the physical market dynamics driving retail demand across Southeast Asia, from central bank buying to store-of-value purchases
Understanding of Singapore's distinct role as APAC's bullion gateway, and competition near and far
Perspective on operational challenges unique to APAC: kilogram pricing, local delivery, and bridging CFD and physical bullion infrastructure
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
License to Fill: Market Liquidity amid Global Turmoil
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
Asian markets bear unique characteristics, from connectivity to asset preference. The Singapore Summit will connect global executives and local experts across the liquidity chain to discuss volatility fluctuations, diversification vs over-reliance on single assets, and the role of trust and liquidity relationships in an increasingly automated sphere.
