Retail investors trust global equity markets more than their own backyards, according to survey data released by Saxo Bank that polled nearly 2,000 clients across 11 markets between September 1 and September 14.

Investors Show More Faith In Global Markets Than Local Bourses

The brokerage's first Investor Forecast found 49% of respondents expect global equities to increase or see a big increase in the fourth quarter, compared with just 35% holding similar views about their local markets. The pattern suggests investors are looking past home-country bias, a behavioral tendency that typically anchors portfolios to domestic holdings.

Saxo converted survey responses into a sentiment scale ranging from negative two for a big decrease to positive two for a big increase, with zero indicating no movement. The results showed global markets scored 0.26, US markets 0.14, and local markets just 0.03.

Age and Gender Shape Outlook

The survey revealed splits along demographic lines. Investors between 18 and 45 registered the most optimism, scoring 0.38 for global markets and 0.26 for US equities . The middle cohort, aged 46 to 60, showed the least confidence in local and US markets, while those over 61 expressed slightly more positive views on domestic bourses than their younger counterparts.

Women reported substantially more caution about local equity markets than men, posting a negative 0.51 score versus positive 0.15 for male respondents. Views on US and global markets aligned more closely between genders.

"Seeing how our clients view the world of investing is so interesting, and their belief in global markets relative to local ones is really something to take note of," said Jacob Falkencrone, Global Head of Investment Strategy at Saxo. "There's so much turmoil in the world, but at least according to our investors, there's still room for the global economy to outperform."

Regional Preferences Lean West and East

When asked which regions would perform best in the final quarter, 32% of respondents picked North America and 27% selected Asia-Pacific. Europe drew the most skepticism, with 37% naming it the worst-performing region.

Gender differences emerged in regional outlooks. Female respondents showed greater bullishness on North America and more bearish views on Europe than men. The two younger age groups both favored North America as the best region and Europe as the worst, while the oldest group reversed those picks.

Recently, Capital.com also released interesting study highlighting significant differences in how traders from various countries perceive the markets. For example, UK traders use stop-loss orders 60% more often than others, which also helps them rank among the most profitable.

Geopolitics and Technology Dominate Risk Radar

Trump-related developments and trade wars each registered 79% among respondents who rated them very important or somewhat important to investment strategy. AI reached 73%, while the Russia-Ukraine conflict drew 55% and Middle East tensions 45%.

Nearly one quarter of clients said they plan to increase diversification in the coming three months by adding new regions, sectors, or asset classes. The oldest age group showed the least inclination to diversify at 20%, compared with 24% and 25% for the two younger cohorts. More than one in three women expect to diversify, significantly higher than the roughly one in four men who said the same.

Country-Specific Patterns Emerge

Denmark showed the most support for its local market, with 49% expecting an increase or big increase in the C25 index. France took the opposite view, with 74% predicting a decrease or big decrease in the CAC 40. Japan demonstrated the strongest conviction in US markets, while Singapore expressed the most optimism about global equities.

The Netherlands reported the lowest AI adoption at 28%, while the UK led usage at 71%. French investors showed the highest intent to diversify at 39%, well above the 23% global average. Dutch respondents preferred maintaining current allocations, with 75% planning no changes to their regional, sector, or asset class exposure.

The survey covered markets including Belgium, Central and Eastern Europe, Denmark, France, Italy, Japan, Middle East and North Africa, Netherlands, Singapore, Switzerland, and the United Kingdom. Saxo distributed the questionnaire through its investment platforms to gather data on market outlooks, diversification plans, regional performance expectations, and AI usage in investment decision-making.

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