Trump’s presidency is yet to spook retail investors. In fact, many are increasing their investments, writes Carl Hazeley, the newly-appointed CEO of Finimize, in today’s Notebook
Retail investors are yet to run scared
The first three months under Trump have revealed something interesting – while investors are less confident about the markets, they’re not running away. They’re getting smarter about where they put their money.
The latest Finimize Modern Investor Pulse, which surveyed over 2,200 modern retail investors, shows that market confidence has fallen significantly – only 60 per cent now believe stocks will be higher in a year, down from 71 per cent. Yet the majority (84 per cent) plan to invest the same or increase their investments this year.
Instead of panicking, nearly half of investors are simply reshuffling their approach. Many are holding more cash (59 per cent) while also exploring investments beyond traditional stocks (53 per cent) and looking at opportunities outside the US (51 per cent).
This comes as Treasury secretary Scott Bessent has warned the US economy might be entering a “detox period”. Even in cryptocurrency, we’re seeing more sophisticated behaviour – though fewer people believe in Bitcoin’s prospects, more are planning to invest in digital assets generally.
The tech sector remains the top choice (65 per cent), followed by energy (49 per cent) and healthcare (36 per cent), showing investors are still confident in specific areas despite recent drops in tech stocks.
What’s clear is that regular investors are thinking long-term. They’re not letting short-term market swings rattle them, but are adapting thoughtfully to the changing financial landscape by building more balanced portfolios that can weather whatever comes next.
Some personal news…
After seven incredible years at Finimize, I’m stepping into the CEO role to lead our next phase of growth. When I joined, we were an ambitious company with a clear vision: empower retail investors with world-class financial insights. Today, that community has grown to over 1m strong. Through Finimize for Business, we’ve helped hundreds of financial institutions connect with modern investors. As a result, Finimize reaches tens of millions of people every year. The rise of retail investing isn’t slowing down, and neither are we.
Earnings season rundown
The end of the first quarter means we’ll shortly be entering earnings season, where companies lift the veil on how things have been going. It’s an important time for investors to sense-check their assumptions and recalibrate their views. Expect a lot of focus on the biggest US companies: overall, analysts expect S&P 500 firms to show seven per cent first-quarter year-on-year earnings growth, with healthcare, information technology and utilities expected to lead the line – and energy, materials and consumer staples firms to lag.
What I’ve been reading
She’s In CTRL by Dr Anne-Marie Imafidon tackles the critical issue of why women are so underrepresented in tech – just about a quarter of the UK’s STEM workforce – and why this matters for all of us.
Anne-Marie, a social entrepreneur, computer scientist and one of my dearest friends, successfully challenges the idea that technology is some unchangeable force designed by, and for, a select few. Through personal stories and the spotlighting of female pioneers, she demonstrates how women have transformed the tech landscape despite significant obstacles. For anyone interested in how we can create a more balanced digital future, I can’t recommend her book enough.