THE STATE OF THE U.S. RETAIL INVESTOR: INSIGHTS & IMPLICATIONS

Over the past several years the heightened market activity and engagement of U.S. retail investors has been intriguing to watch. A number of factors continue to have a profound influence on the retail investor segment including technology advancements in trading as well as the impact of inflation.

It is well-known that market conditions of recent years from COVID-19 to rising costs and constraints on supply chains and staffing have triggered volatility in individual equities along with fluctuations in the overall market as stock prices reflected corporate performance. But what is most interesting is how retail investors responded to these circumstances.

“The majority of respondents in all four cohorts view individual stocks as the asset class that will provide the greatest short and long-term rates of return.”

In an initial assessment of these trends, the BNY Mellon Retail Investor Survey tracked the effect on investing behavior across four retail investor cohorts; nascent investors, traditional Investors, established investors and retirement investors.  The majority of respondents in all four cohorts view individual stocks as the asset class that will provide the greatest short and long-term rates of return.

The survey not only provides trends and insights into the asset classes, investment horizons, sectors and sources of information for these cohorts, but also provides both issuers and asset managers tactics to market, communicate and educate these cohorts.