Younger Traders Are Ignoring the US Market, and Brokers Should Be Paying Attention

Retail investors are heading into the second quarter of 2026 with cautious optimism, but the picture underneath that headline number is more complicated, and potentially more useful, than a simple confidence reading, according to Saxo’s Q1 2026 Investor Forecast.

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Japan emerged as the clear favorite for the coming six months. Sixty-three percent of respondents expect the Japanese equity market to rise, more than any other major market covered in the survey. The global equity market came second at 57%, Europe third at 51%, and local markets at 48%. The US sits at the bottom, with only 40% expecting gains and 34% expecting a decline, the highest negative reading of any market tested.

That gap between Japan and the US is not just a data point, it is a signal for brokers about where client interest is likely to concentrate over the period.

US Skepticism Cuts Across Borders

The caution toward US equities holds across age groups, with 41% of the 18-35 cohort expecting an increase, 40% among the 36-60 group, and 39% among those aged 61 and above. The spread is narrow enough to suggest this is not a generational view, but a broadly shared one.

The pattern echoes what Saxo's first Investor Forecast found in late 2025, when clients across 11 markets also expressed more confidence in global equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term than in their home bourses, pointing to a persistent structural preference for international diversification over domestic conviction.

"Investors are clearly walking a fine line between optimism and caution," said Charu Chanana, Chief Investment Strategist at Saxo. "The standout result from this survey is the strong confidence in Japan compared with other major markets. While many investors remain wary of stretched valuations, particularly in the US, Japan is increasingly seen as a market where structural reforms and corporate improvements could continue to drive upside."

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The national breakdown adds further granularity. Japan, Singapore, and UK respondents show relatively stronger confidence in US markets, while French, Italian, Danish, and Dutch respondents lean more skeptical.

A Stable Core, But a Minority Ready to Move

Most investors are not planning dramatic changes to how they allocate capital. Sixty-three percent say they will stay invested in the same regions, sectors, and asset classes over the next six months. Twenty-seven percent plan to add exposure in areas where they are not currently invested, and 10% say they may reduce the scope of their holdings.

This split between continuity and expansion has direct product implications for brokers. The roughly one-in-four investors willing to move into new territory represent a meaningful segment, and data from Saxo's own client performance analysis published earlier this year showed that multi-product investors outperformed single-product investors in three of the past five years, with the gap widening most recently.

Multi-product investors returned 15.8% in 2025 against 13.5% for those using a single product type, according to that report.

Overvaluation Dominates the Macro Agenda

Among six themes that could prompt a strategy change, concern about market overvaluation drew the strongest response by a clear margin. Sixty-nine percent of respondents said this factor may influence how they invest, well ahead of Trump policy impacts at 57%, AI-driven opportunities at 56%, growth optimism at 54%, AI-related concerns at 53%, and European defence needs at 48%.

The spread across age groups on overvaluation is notably narrow: 63% among the 18-35 cohort, 70% among the 36-60 group, and 69% among the 61-plus segment, suggesting this concern cuts across generational lines more cleanly than most other themes.

Chanana added that the results should be read with one important caveat: most responses were collected before the US and Israel attacks on Iran on February 28, 2026. "That and the ensuing hardship is bound to have changed sentiment for many investors," she said.

Younger and Female Investors Lean More Bullish

Demographic splits in the data are consistent enough to carry strategic weight. Women expect increases more often than men across every major market tested: 62% of women anticipate gains in the global market versus 57% of men, and 45% expect the US to rise versus 40% of men.

Younger investors follow a similar pattern, with 70% of the 18-35 group expecting global equity gains compared to 59% of the 36-60 cohort and 52% of those aged 61 and above.

Other 2026 data points to a broader generational shift in retail participation. Research published in February found Gen Z and millennial investors entering 2026 with a stronger appetite for risk, and a separate eToro survey from the same month found 87% of Gen Z respondents invest in markets every month, versus 68% of baby boomers. Together, these reports suggest the retail investor base is being reshaped by demographic inflows that tend to carry more risk tolerance and broader market engagement.

On diversification intent, the age gradient also runs in a clear direction. Thirty-one percent of the 18-35 group plan to add new areas, compared with 28% of the 36-60 segment and 23% of those aged 61 and above. The share planning to reduce exposure rises with age from 6% to 10% to 13%. Brokers building out product roadmaps or onboarding flows may find these cohort patterns worth mapping against their own client demographics.

What the Data Signals for the Industry

The clearest signal for the CFD and retail brokerage sector may be the combination of stability at the top level, with two-thirds of clients staying put, and real divergence at the demographic and geographic layer.

Brokers who treat their client base as homogeneous risk underserving the roughly one-in-four investors actively looking to expand, the younger and female cohorts consistently showing higher optimism, and the country-level differences in macro sensitivities that suggest national product and communication strategies may be worth more than a single global narrative.

Saxo's own client growth trajectory, reaching 1.5 million clients with DKK 800 billion in assets by the end of 2024, reflects the broader trend of retail platforms benefiting from exactly this kind of engagement.