2025 will be a retail year investment per many surveys done in the last quarter of 2024. Investors are making several commitments to invest in markets that have the potential to grow in 2025.
Bret Kenwell of eToro discusses a survey that was conducted on 1,000 retail investors in the United States. 61% of respondents affirmed that the “bull market will persist.”
According to the retail investor beat from eToro, U.S. retail investors ranked Amazon first, with 12% selecting the online retailer.
In addition, confidence in AI stocks is also high, with 16% anticipating that they will continue their substantial increase into 2025, while 42% anticipate more incremental increases in their share prices.
Analyst Bret Kenwell said, “Tech often serves as a leadership group for US stocks, and with mega-cap and AI-related stocks garnering strong momentum as Q4 draws to a close, retail investors are looking for that to continue in 2025. Given how well markets have performed and how well these companies are doing, it’s no surprise that investors are optimistic.”
eToro ranks the 7 Magnificent
According to the survey, the ‘Magnificent 7’ equities are most likely to increase their investments in 2025. US retail investors ranked Amazon first. Amazon’s share price has enjoyed a nice boost this holiday season.
Tesla came in second with 11%. Elon Musk of Tesla has been making big steps in the AI sector. Being in the new government administration his businesses are expected to do well next year which is inclusive of Tesla.
Apple followed closely, with 10% of retail investors rooting for the company. Right behind them is Nvidia, which has 8%. Alphabet and Microsoft stood at 7%, and Meta at 6% made up the rest of the list.
Retail investors were generally more cautious when asked about the Magnificent 7’s overall performance in 2025. Only 16% of them anticipated that they would considerably outperform the market, while 32% believed that they would only slightly outperform.
Notably, the data also emphasized gender disparities. Women were more inclined to increase their investments in Amazon in 2025, whereas males preferred Nvidia.
Crypto gains more traction than stocks
The re-election of Donald Trump, a pro-crypto president, has inspired substantial adjustments in retail investors’ portfolios. 55% of investors have adjusted their strategies.
Of those that are planning on adjustments, 66% are increasing their allocation to crypto, a more popular option than US stocks 50%. Bret Kenwell explained that Crypto has done really well. He further pointed out that Bitcoin has doubled its price for two consecutive years.
Bret Kenwell asserted, “Retail investors are showing a keen 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 crypto rally will persist into the new year.”
On the other hand, 55% of respondents intend to enhance their cash holdings, which continue to be the most frequently held asset class, 79%.
Bret Kenwell added, “At the same time, the increase in cash allocations is a strategic move as having cash available puts investors in a position to take advantage of a pullback in stocks or crypto amid an otherwise solid economic backdrop, highlighting discipline among retail investors.”
Retail sales final stretch of 2024
The Commerce Department reported on Wednesday that U.S. retail sales increased once more last month. This follows the record spending over Thanksgiving, which suggests that consumer strength will persist into the final months of the year.
🎉 The final stretch of 2024 is here.
Markets tend to be quiet this time of year, but $SNOW is catching attention after a bullish move. Can it keep the momentum?
Analyst @BretKenwell discusses the outlook for this week and beyond.
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— eToro US (@eToroUS) December 23, 2024
Reports show that sales increased by 0.7% to $724.6 billion, surpassing the consensus prediction of a 0.5% increase on Wall Street. Also, the October reading was revised upward, resulting in a final gain of 0.5%.
Elizabeth Renter, senior economist at NerdWallet, said, “American retail spending continues to grow at a healthy clip, signaling consumer confidence as we head into the holiday season […] Spending on autos and nonstore or online retailers grew most robustly in November.”
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