The bear market of 2022 was anticipated to have tested the patience and trust of most investors, but reports from a recent survey suggest otherwise.
As per a recent report by a social trading platform, most retail investors are very interested in investing in digital assets despite what has been called the worst bear market in crypto history. The report reveals that more than 69%, nearly two-thirds of retail investors, are positive or have mixed feelings about the impact of the prolonged bear market.
On the contrary, about 31% said they were wary of investing in the industry after the crash. Commenting on this renewed interest from retail investors, Ben Laidler, the researching firm’s global markets strategist, said:
The fact that two-thirds of retail investors feel indifferent, or even more positive, after the worst year for markets in a generation might seem odd. But the majority of this cohort thinks in years and decades. For those with longer time horizons, the back end of 2022 has offered a chance to buy companies at lower valuations, improving the outlook for long-term returns.
Sources reveal that the report surveyed over 10,000 retail investors from 13 countries across three continents. Investors have voted for the decreasing fear of the perceived threat of inflation as one of the primary drivers of high confidence.
The study found that by the end of the previous year’s third quarter, about 24% of retail investors considered the perceived threat of inflation the most considerable risk to their investment portfolios. Eventually, as 2022 neared its end, the fear of inflation dropped to almost 19%. In contrast, about 22% of respondents cited the global recession as the primary concern to their investment portfolios in the year ahead.
As a result, many investors are adjusting their portfolios with cash allocation climbing to over 50% and adding more defensive assets like healthcare and utilities. In addition, the survey also found that younger investors have the slightest fear of the crypto market, while older investors looking at a looming retirement are more reluctant.
About 76% of young retail investors between 18-34 feel positive or indifferent about the downtrend. In contrast, only 60% of older investors above 55 have a positive attitude toward the crypto market.
The report stated that the bear market of 2022 had been most uncomfortable for the older population on the verge of retirement.
Quoting the report:
2022 will have been the first major bear market for many less experienced retail investors, yet the data shows that older investors with shorter retirement time horizons are feeling the strain the most.
Retail investors have shown ample confidence in cryptocurrencies. In December, Todayq News reported that retail investors like the shrimps holding fewer than 1 Bitcoin were aggressively accumulating Bitcoins.