- 45% of retail investors think the US will generate the strongest returns in 2025, followed by China (24%) and Europe (20%)
- Technology is the most favored sector, with 18% planning to increase their allocation
- Cryptoassets are growing in popularity up 20% since Q4 2023
- Retail investors have more confidence in their portfolios, with Australia (+10%) and Spain (+9%) leading year-on-year growth
- Romanian investors prioritize foreign stocks
Retail investors across the world are setting their sights on the US stock market, the technology sector, and cryptoassets for 2025, 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 45% believe the US stock market will generate the strongest returns in 2025, coming out miles ahead of China (24%), Europe (20%) and other regions. Romanian investors are not very different when it comes to confidence in the US market (46%) but they prefer Europe (3%) and China (28%) markets more than the global average.
While the US is the most favored market by retail investors in every country surveyed, the data reveals that investors still tend to be more optimistic about their home markets than the global average.
When asked which stock market will generate the strongest returns in 2025, the US had the highest percentage of investors who chose their home market at 56%. 24% of British and 30% of Australian investors chose their home markets, yet globally, only 8% and 7% of investors chose these two countries respectively. European investors also contributed to raising the global average trust in their region. Specifically, 23% of German, 21% of French, 25% of Spanish, 21% of Italian, and 29% of Dutch retail investors believe that Europe will be the best-performing region by 2025. In contrast, only 10% of British and 9% of US investors share this optimistic outlook for Europe.
Commenting on the data, eToro’s Global Market Strategist Lale Akoner, said: “Encouraging economic signals are driving retail investors’ optimism for the US market. In fact, the US is the only country investors across the globe agree on when asked about the most promising markets for 2025.
“Humans naturally tend to favor what they understand, and for retail investors, this often translates into optimism about and a preference for their home market. In some cases, this may be well-founded. British investors may find encouragement in the weakening of the pound against the dollar, which enhances the competitiveness of the UK-listed firms in global markets. European investors may be buoyed by strong earnings reports from companies in the tech sector such as Dutch ASML or German SAP, or the loosening monetary policy of the ECB.”
Investors most likely to increase tech and crypto investments in 2025
When asked which sector they are most likely to increase their investments in for 2025, technology remains the top choice for retail investors across the world, cited by 18% of respondents. Interest in this sector has grown over the year, up 29% from Q4 2023.
Following closely behind and with stable interest throughout 2024, financial services attracts 11% of investors. Real estate and energy sectors are each favored by 9% and healthcare by 8%.
Looking at asset class preferences, crypto is seen as the most promising, with 18% of investors (27% of Romanian investors) planning to prioritize it in 2025. Interest in cryptoassets has surged significantly, with 20% more investors intending to increase their investment in this area compared to Q4 2023. Conversely, cash assets have experienced the steepest decline in investor interest. Only 11% of investors (13% of Romanian investors) now consider cash as the asset they are most likely to increase their investment in, marking a 27% year-on-year decrease.
The list of most popular asset classes for 2025 continues with locally-listed stocks (12%), internationally-listed stocks (10%), commodities (8%) and domestic bonds (8%). The Romanian investors declared they will prioritize investments in foreign stocks (12%) versus domestic listed ones (8%). While at the end of 2023, the situation was similar, the gap between the two assets increased in favor of the foreign stocks.
Bogdan Maioreanu, eToro Analyst in Romania said: “The final months of 2024 brought key events that are now shaping the way retail investors approach their portfolios this year. With central banks globally starting to lower interest rates, there has been a shift towards growth sectors like technology, while the appetite for cash wanes. However, political uncertainty in Romania made some investors rethink their investment strategy for 2025.
“The re-election of Donald Trump plays a significant role in the retail investors’ renewed focus on the crypto market with hopes for policy changes favoring digital assets. The US technology sector has also experienced a confidence boost, driven by Trump’s campaign promises to reduce regulatory constraints and implement tariffs to promote domestic innovation, which could enhance the sector’s growth.”
More confident than last year about their portfolios
Retail investors across the world are moderately more confident now than they were at the end of last year when it comes to their investments. Investor confidence is now at 78%, up from 76% in Q4 2023.
The data reveals significant variations in confidence levels among retail investors from different countries. Investors in the Netherlands remain the most confident (93%), followed by Germany (82%) and Australia (79%). Over the past year, the countries with the most significant increase in investor confidence are Australia, with a 10% rise, and Spain (9%). The least confident are French investors, at 70%. Romanians are in the top three most confident investors in their investment portfolios and choices.
Investors’ confidence in their investments
| Q4 2023 | Q4 2024 | Variation YoY (%) | |
| Global | 76% | 78% | 3% |
| UK | 76% | 78% | 3% |
| US | 75% | 75% | 0 |
| Germany | 81% | 82% | 1% |
| Australia | 72% | 79% | 10% |
| France | 72% | 70% | -3% |
| Spain | 68% | 74% | 9% |
| Italy | 76% | 78% | 3% |
| Netherlands | 94% | 93% | -1% |
| Romania | 81% | 80% | -1% |
