Retail investors are displaying a remarkable resurgence of confidence in the US economy, according to the latest quarterly Retail Investor Beat survey from eToro, a trading and investing platform.
Conducted earlier this year, the survey of 10,000 retail investors across 12 countries reveals a significant shift in sentiment, with 38% now viewing the US as the region with the strongest long-term return potential—a 12% increase from the previous quarter.
This marks a reversal of two consecutive quarters of declining confidence, with drops of 9% in Q1 and 17% in Q2 of 2025.
The renewed optimism comes despite challenges such as new tariffs and labor market weaknesses, underscoring the resilience and adaptability of retail investors.
The survey highlights that 43% of retail investors now have exposure to the US market, an 8% increase from the prior quarter and the highest level since eToro’s Retail Investor Beat began in Q1 2023.
This pivot back to US markets follows a period of diversification into Europe and emerging markets, prompted by earlier concerns over political instability and macroeconomic uncertainty in the US.
eToro’s Global Market Strategist, Lale Akoner, noted:
“As confidence in the resilience of the US economy improves, we’re seeing portfolios tilting back toward the US, reflecting recognition that the American market remains the cornerstone of global investing.”
This shift suggests retail investors are balancing diversification with a renewed belief in the US as a hub for long-term growth opportunities.
Despite this optimism, challenges persist.
New tariffs introduced by the Trump administration in early 2025 caused sharp market swings, particularly impacting high-growth tech stocks like Google, Nvidia, and Tesla.
Yet, retail investors seized the opportunity to “buy the dip,” demonstrating a level of discipline that challenges the outdated notion of retail investors as impulsive or uninformed.
eToro CEO Yoni Assia, in an interview, emphasized this trend, stating:
“We saw a lot of our retail investors jumping in to scoop opportunities with Google, Nvidia, and Tesla.”
This was reminiscent of similar behavior during the COVID-19 market volatility when retail investors capitalized on institutional pullbacks.
Labor market weaknesses, including concerns about job growth and wage stagnation, have also failed to dampen investor enthusiasm.
The survey indicates that fears of a global recession have eased, dropping from 26% in Q2 to 23% in Q3 2025, aligning with levels seen a year ago.
However, 14% of investors now view their home economy as the biggest risk to their portfolios, up from 11% last quarter, with US investors expressing the highest concern at 28%.
Inflation remains a key worry but has stabilized, suggesting investors are adapting to a “higher-for-longer” environment and focusing more on local economic dynamics than global shocks.
The survey also sheds light on evolving attitudes toward the US dollar and the “Magnificent 7” stocks (Amazon, Apple, Microsoft, Meta, Tesla, Nvidia, and Alphabet).
While 50% of investors are adjusting portfolios in anticipation of a potential long-term weakening of the USD, 83% remain confident that it will retain its status as the global reserve currency for the next decade.
Only 7% believe it will lose this position, with alternatives like Bitcoin, the Chinese yuan, or gold cited as potential replacements.
Meanwhile, interest in the Magnificent 7 has waned slightly, with investors adopting a more measured outlook on their 2025 performance, reflecting a broader diversification strategy.
eToro’s platform, with over 40 million registered users across 75 countries, continues to empower retail investors through tools like CopyTrader and Smart Portfolios, enabling them to navigate volatile markets.
The company’s recent expansion, including 24/5 trading for US equities and over 100 crypto-assets, supports this investor resilience.
As retail investors demonstrate sophistication and pragmatism, their renewed confidence in the US economy signals somewhat of a shift in global investment trends, even amidst tariffs and labor market challenges.