Retail investors most likely to vote Labour & Democrat this year, according to latest research from Finimize
- Record optimism – 76% of retail investors believe the global stock market will be higher 12 months from now, up from 74% last quarter
- Retail investors voting with values over returns in UK and US elections
- Half (52%) of UK investors predict increased market volatility post election, 42% of US investors feel this way
- US & UK investors remain optimistic about their portfolios – 59% believe theirs will go up post-election
June 26 2024, London – Financial information platform Finimize’s latest quarterly Modern Investor Pulse survey of 3,091 retail investors, launched today, shows record levels of optimism for the global stock market and a trend for values voting when it comes to the UK and US elections.
Record optimism amid market shifts
As interest rates head down – the ECB cut rates on 6th June, and the Swiss central bank followed on 20th– optimism among retail investors is at an all-time high, with 76% anticipating a rise in the global stock market over the next year, compared to 74% in the previous quarter. Although optimism for bitcoin remains robust, it has seen a slight dip, with 61% expecting its price to rise in the next 12 months, down from 63% last quarter.
Additionally, more than a third (38%) of retail investors plan to increase their investments within the next three months, with stocks continuing to be the most favoured investment option, followed by ETFs and cash.
Election market volatility & values voting
Despite predicting increased market volatility post-election (52% of UK investors feel this way alongside 42% of US investors), over half of UK and US investors believe their portfolio values will rise after the elections have taken place.
As for where they plan to cast their votes, UK and US investors are planning to vote with their values over their returns when it comes to the elections. UK investors are more likely to vote for Labour (38%) over the Conservatives (23%), despite more believing Conservatives will be best for the stock market.
Over in the US, US investors are more likely to vote for the Democrats (47%) over the Republicans (34%), despite more believing a Republican win is best for the stock market.
Carl Hazeley, Chief Analyst at Finimize said: “ With record levels of optimism among retail investors, likely spurred by recent and further expected interest rate cuts, retail investor activity is showing no signs of slowing down for the rest of the year.
“Despite the upcoming elections in the UK and US, the data shows retail investors are taking a long-term approach and remain confident in the resilience of their portfolios. Over half aren’t planning to make significant changes before the elections take place (59% UK investors, 51% US) but are optimistic about the value of their portfolios after election season ends.”
About the Modern Investor Pulse: The Modern Investor Pulse report is a quarterly survey of Finimize’s global community of retail investors. The latest full survey data is available on request.
About Finimize: Finimize empowers retail investors with concise insights from world-class analysts. With over one million subscribers to its newsletter and mobile app, Finimize boasts one of the largest retail investor communities globally. Over 70,000 members attend their events annually. Finimize for Business, launched last year, supports over 350 financial institutions in engaging modern investors and creating content that drives engagement, revenue, and retention. Through its network of partners, Finimize content reaches over 40 million individual investors worldwide.
