1 in 4 Investopedia Readers Say They Now Own Crypto—See What Else They’re Buying | Global News Avenue

A quick resolution to the election and the Federal Reserve’s recent rate cuts could propel stocks to new highs, but individual investors are waking up to a new set of concerns that are tempering their expectations for outsized market returns in the near and near term, according to Investopedia’s report to its readers. The latest survey shows.

While more than two-thirds of respondents described their sentiment as cautiously optimistic or upbeat, nearly 40% said they were at least somewhat concerned about recent market events, an increase of 8 percentage points from early October.

More than half (55%) believe the stock market is overvalued, but the majority of respondents (64%) say they would not change the amount they invest regularly. A small portion of respondents said they were investing more and making riskier investments as a result of the election results and recent interest rate cuts. 15% said they were investing less now due to concerns about a potential recession and rising stock market valuations.

Cryptocurrency enthusiasm returns

President-elect Trump spoke at the Bitcoin 2024 conference in Nashville, Tennessee, in July, making a strong pitch to the pro-cryptocurrency crowd. Among the promises he made were to make the United States the cryptocurrency capital of the world, never sell the Treasury’s Bitcoin reserves (currently totaling 297,000 Bitcoins), and let the Treasury mine its own Bitcoins. While many of these promises may never come true, enthusiasm for Bitcoin and other cryptocurrencies has surged along with prices since the election results became clear. It’s no surprise that the number of respondents (25%) who say they now own Bitcoin and other tokens is as high as ever.

What investors are buying now

Over the past few months, respondents have been choosing exchange-traded funds (ETFs) as the investment product they continue to purchase more of, followed by stocks and index funds. But cryptocurrency vulnerabilities can be contagious, with 12% of respondents saying they would buy more cryptocurrencies as prices rise, slightly lower than CDs.

What would you do with an extra $10,000?

For much of 2024, survey respondents selected individual stocks or ETFs as their top choice for allocating an additional $10,000, if at all. According to Investopedia’s latest survey, individual stocks currently top the list, slightly ahead of ETFs, which were their top choice in early October. Cryptocurrencies break into the top ten of the list for the first time, with 12% of respondents choosing them as their first choice for investing an additional $10,000. Notably, many respondents said asset classes including cryptocurrencies and individual stocks are currently overvalued.

Rising tariffs worry investors

With President Trump re-elected and Republicans sweeping Congress, investor concerns have turned to the potential impact of new economic policies on their portfolios. More than half of respondents selected the prospect of higher tariffs as their top concern, closely followed by U.S. relations with China. While inflation and the election itself have been a focus for readers throughout the year, they are now faced with the potential impact that Trump’s campaign promises of higher tariffs, lower taxes and more government spending could have on their future returns.

Trump 2.0 and investors’ portfolios

Respondents had mixed views on which of the president-elect’s policies might have the greatest impact on his portfolio. While nearly 65% ​​of respondents said higher tariffs would have a negative impact on their returns, nearly 70% believed lower corporate tax rates and greater personal tax relief would benefit their investments. More than half of respondents believe deregulation of financial and energy markets will have a positive impact on their investment portfolios.

Readers appear uncertain about future stock market returns

While Investopedia readers are generally confident about their portfolios today, the future is looking a bit murky. Optimism about near-term returns over the next six months is rising, but optimism about returns over the next ten years has declined. About 41% of respondents believe returns will reach at least 5% in the next six months, an increase of 8 percentage points from early October and the highest level all year. Nearly two-thirds (67%) believe the 10-year return will be at least 5%, slightly lower than at the beginning of October.