- Retail investors reached new levels of confidence in their investments (80%), income & cost of living standards (74%), and the US economy (57%)
- Investors rank the state of the US economy (28%) above inflation (22%) as the biggest threat to their portfolios for the first time in seven quarters
- Amazon, Apple & Microsoft are set to see increased investments, driven by younger investors
September 10, 2025 – Retail investors are regaining confidence in the US economy, according to the latest quarterly Retail Investor Beat from trading and investing platform eToro. The study, which surveyed 1,000 retail investors across the United States, revealed that this group is particularly confident in their investments (80%), income and cost of living standards (74%) and the US economy (57%) despite ongoing concerns over tariffs and a softening labor market. The largest spike in optimism occurred in those who reported feeling “very confident” about the US economy, surging from 13% in the previous quarter to 26% in Q3. This jump is driven primarily by Gen Z (35%), Millennials (48%), and Gen X (33%) compared to Boomers and the Silent Generation (8%).
Confidence Levels Over Time
Despite confidence levels breaking new records across all categories, over a quarter (28%) of investors now perceive the state of the US economy as the primary threat to their portfolios, surpassing inflation (22%) for the first time in seven quarters.
Commenting on the data, eToro US Investment Analyst, Bret Kenwell, said: “Earlier in the year, confidence sank as tariffs impacted businesses, consumers and investors. But with a resilient economy and markets at record highs, confidence among retail investors rebounded significantly. With an active approach to markets, retail investors who seized opportunity during the market’s dip are now seeing the payoff, with growing confidence in their portfolios and pursuit of their financial goals. At the same time, they remain vigilant of the macroeconomic backdrop, evaluating ongoing risks that could disrupt the rally.”
Investment Allocations & the Magnificent 7
Despite this year’s market volatility and macro uncertainty, investors are increasingly honing their focus. With 60% of investors currently holding financial services stocks, a majority plan to increase allocations in technology stocks (25%), followed by financials (10%), energy (8%) and real estate (8%).
When asked how they believe the so-called ‘Magnificent 7’ (Amazon, Apple, Microsoft, Meta, Tesla, Nvidia and Alphabet) will perform as a group in 2025, almost half (46%) of investors believe the group will outperform the broader market this year. 29% of retail investors said they have invested or plan to invest in Amazon, followed by Apple (25%) and Microsoft (24%). These three stocks were the preferred ‘Magnificent 7’ picks last year, showing investor conviction in them has strengthened over the past year.
The bullish sentiment towards Amazon is largely driven by younger investors with over half of Millennials (51%) planning to increase investments in the stock, followed closely by Gen Z (41%) and Gen X (34%) investors. Although older generations still favor Amazon, Boomers (10%) and Silent Generation (9%) investors are significantly less likely to increase investments in the stock.
Kenwell commented: “After a lackluster couple of quarters, tech has finally regained a key leadership role within the rally. Not only are these some of investors’ favorite stocks, but they represent the largest companies in capital markets. As AI remains a dominant theme in markets, retail investors refuse to abandon tech stocks — and rightfully so. They are constantly looking for opportunities within the Mag 7, even if that means rotating preferences within the group.”
ENDS
Notes to editors
About this report
The latest Retail Investor Beat was based on a survey of 10,000 retail investors across 12 countries and 3 continents. The following countries had 1,000 respondents: UK, US, Germany, France, Australia, Italy and Spain. The following countries had 600 respondents: Netherlands, Denmark, Poland, Romania, and the Czech Republic.
The survey was conducted from August 5 – August 19 and was carried out by research company Opinium. Retail investors were defined as self-directed or advised and had to hold at least one investment product including shares, bonds, funds, investment ISAs or equivalent. They did not need to be eToro users.
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