• eToro survey shows 27% of investors intend to reduce holdings in big tech, seeking opportunities in other sectors.
  • 71% of investors aged 18-34 plan to rebalance their portfolios in anticipation of economic shifts, compared to only 37% of investors over 55.

A new survey by online brokerage eToro reveals that a significant portion of retail investors plan to adjust their portfolios in the coming year. Over a quarter (27%) intend to reduce their investments in the “Magnificent 7” big tech stocks (Amazon, Apple, Microsoft, Meta, Tesla, Nvidia, and Alphabet).

This shift comes after a strong performance by big tech over the past 14 months and ahead of anticipated interest rate cuts projected for 2024. Investors appear to be anticipating a resurgence in other sectors that are more sensitive to shifts in the economic cycle.

“The expected cuts in global interest rates will support economies and stock valuations, driving a major shift away from big tech towards sectors like real estate, small caps, Europe and emerging markets,” comments Ben Laidler, eToro Global Markets Strategist.

The majority (53%) of retail investors plan to rebalance their portfolios in anticipation of these changes. Younger investors (aged 18-34) are most likely to adapt their strategies, with 71% indicating they will rebalance their portfolios.

Despite the planned shift away from big tech, many investors remain committed to the sector. 23% indicate they will increase their investments in big tech, while 34% will maintain their current levels of holdings.

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