- Two thirds (61%) of investors buy in the face of market downturns
- Majority (70%) of investors change their investment strategies when market conditions change
- Only 17% say news headlines significantly guide investment decisions
- Market volatility spurs more discussions about investment, especially among young investors
July 22, 2025 – Retail investors are capitalizing on market volatility and buying the dip 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 61% of retail investors buy the dip during market declines. Of these investors, 6% buy during any decline, 18% when the market falls 5-10%, 24% when it drops 11-20%, and 13% when it plunges over 20%. On the other hand, 28% of the investors surveyed reported not timing the market due to automation or routine investments. Within this cohort, women were significantly more likely to have automated investments, with 39% reporting they do, compared to just 17% of men.
Amidst market turbulence, 70% of investors change their investment strategies when volatility increases. This behavior is particularly prominent among younger investors: Gen Z (91%), Millennials (87%), and Gen X (76%). In contrast, this number drops significantly in older generations like Baby Boomers (52%) and the Silent Generation (46%). Key factors driving strategy shifts include a recession or economic downturn (21%), portfolio underperformance (18%), and extreme market valuations (15%).
Commenting on the data, eToro US Investment Analyst, Bret Kenwell, said: “Retail investors have learned to embrace volatility as an opportunity and are running toward the dips rather than away from them. At the same time, emotions are a real part of the process and as those dips become deeper, that volatility has an impact. With a healthy portion of investors opting to automate their investment purchases, retail investors are showing discipline and awareness as they play the long game.”
The impact of news headlines
News headlines play a role in shaping investment decisions, with over half (53%) of investors acknowledging their impact. Of this group, only 17% of retail investors stated that news headlines significantly guide their investment decisions, while 36% say the news somewhat affects their choices. 23% claimed that headlines do not significantly sway their strategies, and 13% stated that headlines do not influence their investment decisions at all.
News headlines evoke a range of emotions among investors. The most common response (32%) was feeling anxious and worrying about the impact on their investments. A third (29%) said that news makes them feel alert and check their investments more frequently, meanwhile almost the same number (27%) reported feeling neutral and not allowing headlines to affect their investment decisions. Only 16% acknowledged feeling overwhelmed by the sheer volume of information.
Kenwell commented: “Markets and headlines can move at blazing speed, and while retail investors are honest in their assessment of how it impacts them, many have learned how to filter through the noise. Investors have to know their timeframe and how certain developments may impact their investments or financial situation. Yet more than half of retail investors remain alert, calm, or neutral as the headlines whiz by. Not only are they flexing their experience, but also their investing discipline.”
Volatility sparks conversations on investing
When markets are volatile, retail investors observe changes in the frequency of investment discussions within their social circles. Overall, 36% of respondents noticed an increase in these conversations. A closer look at generational trends reveals that this trend is particularly pronounced among Gen Z and Millennials, with 46% and 51% respectively observing more discussions. In contrast, the percentage drops to 37% and 25% respectively for Gen X and Baby Boomers.
Kenwell added: “Periods of market volatility can act as a catalyst for reflection and conversation — and that conversation has a tendency to extend to friends and family amid more turbulent times. It’s a fresh reminder that the social component of investing continues to play a prominent role among retail investors, and illustrates how conversations around finance and investments have evolved across generations. Community continues to play an ever-increasing role in investors’ approach to capital markets.”
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 May 14 – May 18 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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