Fortunately, as a year marked by notoriously bearish global markets comes to an end, what are the prospects for 2023 for investors around the world? They are actually more optimistic than they think, according to new surveys by the Global Financial Markets Platform, Investing.com .
While conventional wisdom suggests that investors would wave the white flag after a painful 2022, an earlier survey by Investing.com he revealed that while private investors in the USA USA. they are experiencing fatigue as their portfolios continue to suffer, but maintain a hopeful outlook for the remaining months of this year and beyond.
The current way of thinking of private investors is largely the same in other countries, according to Investing.com , the world’s largest financial market platform with editions in 44 languages and users in 136 countries.
At the end of December, more than 90% of investors surveyed in Turkey (95%) and Brazil (94%) still plan to continue investing in the first months of 2023, compared to 89% in Spain and 80% in Italy. (In the US, according to the previous survey, 90% of retail investors still planned to continue investing in the last months of 2022.)
The optimism of investors is also reflected in the fact that more than half of the respondents predict the appearance of a bull market in the next 12 months, led by Turkish investors (73%), followed by those from Spain (67%), Italy (59%), the USA (57%) and Brazil (35%).
“A new generation of retail investors who entered the market at the height of the recent times have tuned in to buy the dip, regardless of market conditions, valuation concerns and macroeconomic concerns,” said Jesse Cohen, senior analyst at Investing.com . “In many ways, the retail investor has become a stronger collective force than the professional investor, and they just don’t care about the same things as the experts.”
While institutional investors are reportedly increasingly leaving equities, the majority of retail investors’ portfolios still consist of equities, including 85% in the USA, 78% in Italy, 74% in Brazil, 68% in Spain and 67% in Turkey.
“While increased market volatility is expected by the end of the year and early 2023, stocks are poised for a strong rally amid signs that inflation may have peaked, which could allow central banks around the world to focus on monetary policy and start cutting interest rates in response to a weakening economy,” Cohen said. “In fact, stock markets have a consistent track record of recovering from heavy losses and recovering from new records over time.”
Of course, this relatively optimistic outlook does not soften the blow of a notoriously bearish year, as most retail investors saw the value of their portfolios decline over the course of 2022. This includes 76% of US investors. USA., followed by 66% in Italy and 51% in Spain. However, in Brazil, only 43% had to accept losses in their portfolios (compared to 40% who recorded profits), and in Turkey, a surprising 78% recorded an increase in the value of their portfolios and only 15% losses.
