- Stronger growth and lower inflation would encourage American retail investors to increase allocations
- Lower interest rates, less uncertainty and better valuations rank among the biggest catalysts for future investments
- Inflation remains the biggest perceived threat to portfolios
- Retail investors invest routinely rather than trying to time the market
August 4, 2026 – U.S. retail investors remain committed to long-term investing, however, the latest quarterly Retail Investor Beat from trading and investing platform etoro reveals the conditions that would motivate increasing allocations.
The study of 1,000 U.S. retail investors found that improving economic conditions, like stronger economic growth and lower inflation, would be the biggest catalyst, selected by 40% of respondents. Lower interest rates ranked second (29%) among the group, followed by reduced geopolitical & political uncertainty (27%), better valuations following a market correction (26%), and clearer guidance from central banks (18%). Only a small minority (8%) of investors report feeling as confident as possible when investing in stocks.
Commenting on the findings, Bret Kenwell, etoro US Investment Analyst, said: “Retail investors aren’t running for cover at every market dip, but they’re not blindly pushing all their chips into the middle, either. Instead, they’re becoming more selective. The findings suggest retail investors are not looking for a single catalyst, but rather a combination of improving economic fundamentals and greater certainty before committing additional capital to equity markets. Investors don’t need to wait for perfect conditions. They can maintain diversified exposure and gradually increase it as confidence in the economic outlook builds.”
Inflation remains the biggest obstacle
While the majority (68%) of retail investors believe they are on track to achieving their investment goals, inflation continues to dominate their concerns. A quarter of respondents (26%) identified it as the single biggest external threat to their investment portfolio, up from 22% in the previous quarter. Trailing behind inflation was the risk of a potential recession (22%), and the state of the global economy (12%).
Despite elevated interest rates, almost half of investors (49%) say the current interest rate environment has not changed their investing plans, with 26% intending to invest more. Over the next 12 months, investors are looking to increase allocations in cash (25%), stocks in growth sectors (25%), high-yield bonds (21%), and commodities (20%).
Bret Kenwell added: “Inflation remains the biggest obstacle because its impact reaches well beyond household budgets. It shapes interest rates, consumer spending, and stock valuations. Retail investors recognize that lasting market gains need support from the broader economy. Rather than chasing rallies, they’re looking for confirmation across growth, inflation and monetary policy before increasing exposure, helping preserve long-term discipline and find balance between risk and reward. At the same time, investors aren’t stepping back from the market. They’re becoming more deliberate about where they put new money to work.”
Investors remain engaged through market volatility
Retail investors continue to favor a disciplined investing approach as opposed to trying to time markets. Nearly a third of respondents (29%) reported they invest routinely or automatically. Of those actively timing the markets, they are most likely to buy during an 11%-20% dip (23%) or a 5%-10% dip (21%). Investors attribute their primary motivators for timing the market to long-term investing goals, attractive valuations, and strong company fundamentals.
Bret Kenwell commented: “Retail investors have become increasingly disciplined. Rather than trying to predict every market move, many are staying invested, automating their approach, and buying when compelling fundamental opportunities emerge. They’re also setting a higher bar for taking on additional risk. The findings suggest today’s retail investors are building portfolios around long-term conviction and improving fundamentals, rather than reacting to headlines or short-term volatility.”
ENDS
Notes to editors
The latest Retail Investor Beat was based on a survey of 11,000 retail investors across 13 countries and 3 continents. The following countries had 1,000 respondents: UK, US, Germany, France, Australia, Singapore, Italy and Spain. The following countries had 600 respondents: Netherlands, Denmark, Poland, Romania, and the Czech Republic.
The survey was conducted from May 14 – 29, 2026 and 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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