Capital.com survey suggests retail investors are “perhaps expecting markets to bounce back”

Rick Steves

“the moment the majority of investors still seem to be taking the view that the set back in stock markets for the year so far is just temporary and a pause before the bull market returns.”

A survey conducted by global trading and investment platform Capital.com found that 62% of its users think that inflation and geopolitical risks will be the two most influential events to impact financial markets in 2022.

Despite these top concerns among retail investors, only 21% of traders thought that interest rate hikes would be a key event for financial markets this year.

The survey had the participation of 4267 traders registered with Capital.com and was carried out between 21 February and 31 March 2022.

30% are bullish, 28% are bearish

The survey suggests that retail investors are perhaps expecting markets to bounce back. 42% of respondents said they had a neutral view on the stock market for 2022, while 30% held a more bullish outlook. The remaining 28% were bearish on the stock market.

David Jones, Chief Market Strategist at Capital.com, said: “At the moment the majority of investors still seem to be taking the view that the set back in stock markets for the year so far is just temporary and a pause before the bull market returns. Let’s not forget – investors and traders have been very well rewarded for more than a decade for just buying the dip and assuming higher prices are just around the corner. Of course back then we didn’t have the threat of further rate rises and stubborn inflation – so the question is if this time it will be somewhat different.”

“42% of respondents having a neutral expectation of the market is testament to the amount of volatility we have seen in just the first months of 2022 – and how that has come as a shock to many investors who have enjoyed years of bull markets”, he continued.

“The slowdown this year is the direct consequence of geopolitical tensions, inflation and interest rate rises. Although Tech IPOs saw a significant decline compared to last year, Tech is still the most followed sector for public listings by our clients, closely followed by Energy, which instead represented the most active sector for IPOs since the beginning of the year. We have seen a number of IPOs either not perform as well as expected, or get pulled with a view to trying to list in the future. So for investors it is something of a waiting game to see if the volatility in markets abates and we return to more normal conditions,” he added.

The broker offers access to derivatives of over 6,000 of the world’s most popular markets as well as commission-free stock dealing, free education and trading tools.

Read this next

Retail FX

eToro valuation halved as SPAC merger deadline expires

The deadline for the completion of the SPAC merger of eToro had passed yesterday, June 30, and the Israeli broker apparently canceled the deal with Betsy Cohen-backed blank-check firm.

Institutional FX

FXSpotStream reports second best figure for monthly volumes

Trading volumes on institutional FX platforms surged in June after fears over the impact of Russia’s military invasion of Ukraine sent speculative asset classes reeling.

Retail FX

Vantage expands MT5 offering with access to new stocks

ASIC-regulated foreign exchange brokerage Vantage has expanded its service offering and trading products by incorporating new markets, namely 14 exchange-based stocks on MetaTrader 5.

Digital Assets

CFTC charges $1.7 billion Bitcoin scam, largest to date

Mirror Trading accepted at least 29,421 Bitcoin from approximately 23,000 investors from the United States and even more throughout the world.

Retail FX

Spotware Systems upgrades cTrader Desktop to version 4.3

Spotware Systems, a technology provider for the electronic trading industry, has launched an updated version of its cTrader Desktop, which adds new functionality to join a roster of advanced trading capabilities.

Digital Assets

OKX launches Block Trading for tighter pricing

With Block Trading, users can integrate spot and derivatives trades on the same platform and trade multiple currencies in a single trade. The service supports trading of perpetual swap, futures, and option contracts with popular altcoins as the underlying.

Industry News

Interactive Brokers pays $1 million to settle with CFTC

Interactive Brokers overcharged its customers a total of $710,828.14.

Metaverse Gaming NFT

DappRadar launches cross-chain token staking

The launch of the cross-chain token staking mechanism by DappRadar comes under a partnership with LayerZero protocol, which enables smart contracts to communicate across different chains.

Digital Assets

Polkadot releases one-stop marketplace for Substrate pallets

Proof-of-stake blockchain Polkadot has achieved a significant feat in its development, as it rolls out Substrate Marketplace, a one-stop shop for exploring the many Substrate pallets currently available.

<