Retail investors are undeterred from their participation in the market even amid an expected recession and ongoing concerns about inflation, according to moomoo‘s 2023 U.S. Investor Survey, a poll of 770 of the trading app’s users that examines their performance in 2022 as well as their outlook on markets, the economy and trading strategies for 2023.
Moomoo’s insights into the investing landscape come at an apt time for the U.S. investing market, which some believe is expected to experience increasing volatility throughout 2023. Surveyed investors expect that inflation will remain a problem in 2023, with almost two thirds of respondents anticipating no rate cuts from the Fed in the upcoming calendar year. Additionally, investors reported a generally negative outlook for the economy going forward. 62% surveyed investors think a recession has already started while only 6% don’t expect an economic downturn in the near future.
Although 61.6% survey respondents lost money trading in 2022, 23.8% maintained their account balances even and 14.7% made money for the year that saw a 19.4% decline in the S&P 500 index, its worst loss since 2008. Despite losses for many traders in 2022, 76% surveyed participants are undeterred and plan to invest more this year than in 2022.
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Moomoo U.S. Investor Survey key findings
- BULLISH SENTIMENT FOR TECH, ENERGY & HEALTHCARE SECTORS: moomoo investors are most bullish on the technology, energy and healthcare sectors in 2023. Despite technology’s underperformance last year, investors are optimistic for a turnaround. In addition, they have high expectations for energy, which was the best-performing sector in 2022, and healthcare, which has historically been a defensive sector in times of uncertainty.
- INVESTORS COULD BE BUYING THE DIP: Three quarters of respondents expect to employ “buy the dip” as one of their trading strategies. The strategy involves waiting for a sharp decline in the price of a stock and then buying shares in hopes of a price rebound. It tends to be more successful in a bullish market and less so in a bearish one such as 2022. Keep in mind that “buy the dip” strategy is an attempt to time the market, which can be a difficult and risky approach.
- CONFIDENCE IS KEY: The majority of users were either somewhat confident (52%) or very confident (37%) of their ability to meet their investment goals. While the market’s performance in 2022 may have shaken some people’s confidence, its returns over the prior 10 years have likely produced gains for many investment accounts. A solid job market and near-record lows unemployment may also contribute to investor’s confidence.
“Amid inflation concerns, macroeconomic downturns, and other economic factors that exacerbate market volatility, it’s more difficult for retail investors to earn money in the stock market today, especially compared to last year,” said Justin Zacks, moomoo’s VP of strategy. “The moomoo community is full of strategic, dedicated investors who take their financial future seriously and deserve the most up-to-date, real-time data and functionality that allows them to make investments designed to help them achieve their own financial goals.”
New Moomoo Report Provides an In-depth Look at Some of The Key App Features
During periods of pricing volatility—especially amid uncertainty about the market trend direction—investors may need to harness more sophisticated tools, analytics and investing resources in an attempt to capture profits, define maximum downside risk and adjust their trading strategies accordingly.
In recognition of this, as well as ongoing efforts to respond to the investing community’s feedback and provide consistently updated, optimized tools, moomoo also released its latest product research report, which provides an in-depth look at some of the key features of the moomoo app.
“In the past year, we saw a nosedive of the market as the external environment deteriorated drastically. In 2021, fast-growing companies and emerging industries were highly sought after, while in 2022, investors were more interested in companies with ample cash flow and stable operation performance,” moomoo’s product manager Shine Deng said in the report.
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“They use tools to assist with decision making more frequently, as they were getting more cautious and pickier.”
Determined by highest volume of use and some of the product team’s favorites, the key features of the moomoo app include:
- option trading
- stock profile and financials
- stock screener
- institutional tracking
- line drawing
- study plan
- heat map
- paper trading
- industrial chain
- earnings calendar
Moomoo is dedicated to finding new ways to work on the app and committed to continually innovating and improving the app for its users. The moomoo brand is dedicated to finding new ways to work on the other areas for improvement and optimization.
The report also provides compelling case studies from the moomoo user community, financial educators and influencers highlighting how these various users leveraged key features, tools and analytics provided by the moomoo app.
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