- Romanian investors are the largest group outside the US, confident in the American market’s long-term potential
- Magnificent seven stocks see reduced retail investor interest
- The majority (89%) of Romanian investors trust USD to remain the global reserve currency
- Inflation returns as the main concern for Romanian investors
- Retail investors are regaining confidence in the US market’s long-term potential after two quarters of decline and have increased their exposure, according to the latest quarterly Retail Investor Beat from trading and investing platform eToro.The research, which surveyed 11,000 retail investors across 13 countries, reveals that 38% now view the US as the region with the strongest long-term return potential, a 12% increase from the previous quarter. This reverses the trend of consecutive declines of 9% in Q1 and 17% in Q2.Romanian investors have the highest percentage (46%), after the Americans (64%), who see the US region as the one with the strongest long-term returns. It’s a 15% increase over the Q2 results, but a 5% decrease from Q1. This confidence is also reflected in the investors’ portfolios. At global level, 43% of investors now have exposure to the US market (41% of the Romanian investors), an 8% increase from the previous quarter and a record high since the start of eToro’s Retail Investor Beat in Q1 2023.
The data revealed that the number of investors planning to reduce their investments has increased marginally across all the ‘Magnificent 7’ stocks compared to a year ago – Meta, Apple, Nvidia and Tesla each saw a 2 percentage point increase, while the remaining firms experienced a rise of 1 percentage point. Retail investors have also slightly decreased their exposure to all of these major US tech stocks. Notably, the number of investors who aren’t invested in or don’t plan to invest in Tesla increased by 6 percentage points. Only Meta, Alphabet and Nvidia experienced a marginal rise in the proportion of investors planning to increase their investments.
Bogdan Maioreanu added: “The Magnificent 7 have driven markets in recent years, but their outsized weight has turned concentration risk into a pressing concern. Retail investors are trimming positions, not doubting the companies’ long-term prospects, but recognizing that overreliance on a few tech giants leaves portfolios exposed to volatility. The shift reflects growing maturity: an embrace of diversification and risk discipline over pure performance chasing.”
Year-on-year changes in global retail investor sentiment towards Mag 7 (Q3 2024 vs Q3 2025)
USD remains unchallenged as global reserve currency
Whilst retail investors continue to prepare for a potential long-term weakening of the USD, with 50% having adjusted or planning to adjust their portfolios (up from 48% in the previous quarter), the majority (83%) have confidence in the US dollar remaining the global reserve currency for the next 10 years, whether they believe the dollar will weaken (33%), strengthen (22%) or remain stable (28%). Only 7% of retail investors believe the US dollar will lose its global reserve status within the next decade. Of those 25% back bitcoin, the Chinese yuan, or the euro, respectively, followed by gold (23%) and central bank digital currencies (16%).
Romanian investors show even greater engagement: 54% have made or intend to make portfolio adjustments, and 89% believe the dollar will retain reserve status for the next 10 years. Of these, 23% expect USD to weaken, 27% anticipate it will strengthen, and 39% believe it will remain stable. Just 6% anticipate the dollar losing reserve status, with 27% backing bitcoin, 24% favoring the Chinese yuan, and 14% supporting the euro as replacements. Notably, 30% of Romanian investors see central bank digital currencies as the most likely successor, a higher share than any other group surveyed.
Global recession fears ease
The latest Retail Investor Beat reveals that recession fears are looking to ease. While the global economy and a potential recession remain retail investors’ top perceived threat to their portfolio, concern has fallen from 26% in Q2 to levels seen a year ago (23%). inflation remains in second place at 19%.
For the Romanian retail investors, inflation has again become the number one concern (24%) followed by a potential recession of the Romanian economy (22%) and the state of the global economy (19%). The resurgence of inflation worries is the result of the actual increase in prices in the Romanian economy following the Bolojan government’s economic measures to reduce the budgetary deficit.
Globally, 14% of investors now see their home economy as the biggest risk, up from 11% last quarter. US investors are the most concerned (28%), followed by the Romanians (22%), the UK (20%), Australia (17%) and France (15%), while Poland, Germany, Spain, and Italy remain below the average at 12% each.
Bogdan Maioreanu ended by saying: “When we look at Romania, inflation is making a comeback, worrying investors who have seen its effects in the past years. Romania now has the largest annual inflation rate in the EU, and it looks like it struggles to find the right formula to tackle the ramping budgetary deficit without upsetting the economy. And investors are clearly voicing this worry in our survey.”
