- Two thirds (66%) of investors buy in the face of market downturns
- Only 12% say news headlines significantly guide investment decisions
- Market volatility spurs more discussions about investment, especially among young investors
22 July 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 10,000 retail investors across 12 countries, revealed that 6% of retail investors buy the dip during market declines. Of these investors, 69% buy during any decline, 22% when the market falls 5-10%, 25% when it drops 11-20%, and 13% only when it plunges over 20%.
Commenting on the data, eToro’s Global Market Strategist Lale Akoner, said: “Retail investors are capitalising on market declines by buying the dip, demonstrating a strategic approach to mispricing amid increased volatility. The data shows that two thirds of investors act on downturns, with many waiting for meaningful corrections before entering. A signal of calculated risk-taking rather than blind optimism. Historical rebounds, such as the 2018 Dow correction (-19%) and the 2020 pandemic drop (-37%), serve as reminders that volatility can offer opportunity for those with patience and perspective. These smart moves continue to challenge the outdated notion of these investors as ‘dumb money’ and underscores their growing sophistication in the financial markets.”
The impact of news headlines
Only 12% of retail investors stated that news headlines significantly guide their investment decisions, with 40% saying that news somewhat affects their choices. 25% 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 popular response (31%) was feeling alert and checking their investments more frequently. A fifth (21%) said that news makes them feel anxious and worry about the impact on their investments, however the same number (21%) reported feeling calm and confident in their long-term strategies. Only 12% reported feeling overwhelmed by the sheer volume of information.
Lale Akoner commented: “Market headlines may come thick and fast, but it is temperament, not information overload, that defines the long-term investor’s edge. Our data shows a broad spectrum of emotional responses, yet more than half of retail investors remain either alert, neutral or calm in the face of headline noise, suggesting a growing capacity to distinguish signal from sentiment. In 2025, from shifting trade policies to bitcoin milestones, the pace of news has accelerated, but so has the retail investor’s ability to adapt without overreacting. This reflects not just awareness of market dynamics, but an evolving discipline.”
Volatility sparks conversations on investing
During volatile market periods, retail investors observe changes in the frequency of investment discussions within their social circles. Overall, 29% 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 35% in each group observing more discussions. In contrast, the percentage drops to 27% and 21% respectively for Gen X and Baby Boomers.
Lale Akoner added: “Periods of market volatility often act as catalysts for reflection and conversation. They heighten collective awareness, not just of risk, but of opportunity, leading many to engage more actively with their investment beliefs. Our findings show that Gen Z and Millennials, having grown up in an era where investing is both digital and social, are particularly attuned to this. Their openness to discussing markets reflects a cultural shift away from the old stigma of ‘money talk’ toward a more informed, peer-driven approach to financial thinking. The normalisation of these conversations is a sign that younger investors are treating markets not as speculation, but as serious, shared inquiry.”
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 14 – 18 May 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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