More than one in four retail investors (27 percent) are shifting away their investments from big tech stocks during 2024, according to a survey by eToro, a trading and investment platform.
The survey comprised 10,000 international retail investors and noted a move away from the so-called “Magnificent 7” of tech companies which include Amazon, Apple, Microsoft and Meta.
11 percent said they intend to sell part of their shares in these tech companies to reduce exposure in these leading stocks. 16 percent plan to reduce the amount of new capital in the next year. 53 percent said they want to rebalance their portfolios before the predicted rate cuts. Younger investors are more likely to want to rebalance their portfolios – 71 percent of those surveyed aged 18-34, compared to 37 percent over 55 years old.
“The much hoped-for cuts in global interest rates are set to move from hope to reality over the summer as the Fed, ECB, and Bank of England all take action. This will help to support economies, earnings growth, and stock market valuations, while driving a major rotation away from the US and big tech stocks towards more economically sensitive and cheaper areas, like real estate, small caps, Europe and emerging markets,” Ben Laidler, eToro’s Global Markets Strategist, said in a statement with the report.