Retail Investors Remain Cautious on AI and Election Impact, Survey Reveals

Retail Traders Unfazed By AI Hype, 2024 Election: Survey - NVIDIA (NASDAQ:NVDA), Micron Technology (NASDAQ:MU)

What don't retail traders care about? The election. 63% say it does not impact their investing strategy. Artificial intelligence (AI) stocks are surging and the 2024 presidential election is shaping up to be one of the most contentious in history. But ask retail traders how it affects them and the response is, "meh." What Happened: According to the latest survey from Public, an investing platform that prides itself on helping members build asset portfolios, most retail traders just aren't excited by AI stocks. Never mind the fact that AI companies -- Nvidia Corp. NVDA, Super Micro Computer Inc SMCI, Micron Technology MU -- saw significant gains and outpaced broader market indexes like the S&P 500. Of the 1,300 responses Public sourced from investors, the firm determined: 35% say that new technology excites them. 30% have purchased a company stock because of their AI capabilities. 64% say AI will be a standard tool for research in the future. 50% are likely to use it to process financial information in the future. The contentious presidential election between Republican Donald Trump and Democrat Vice President Kamala Harris doesn't seem to faze investors, either. "Many investors are indifferent to the election as it relates to the market or their own portfolio, but a number of investors purchased company stocks or traded options based on who they predict will win and how it will benefit their portfolio," Public derived from the findings. Here's a breakdown: 63% say no, the election does not impact their investing strategy. 37% say yes, it does impact their investing strategy. 16% of investors are buying more stocks or options of a company based on who they predict will win and the impact it will have on their portfolio. 13% are investing less in 2024 due to the election. 12% are investing more. There is also a direct 50/50 split among investors saying that economic data from the Federal Reserve impacts their investing decisions with 50.4% of retail traders saying "yes" and 49.6% saying "no." See Also: Trump Pushes Tariffs On Chinese Cars In Detroit Visit, Vows To Revamp Industry Why It Matters: The ho-hum response toward the economy is something that has plagued the Biden-Harris administration for months, despite solid numbers. As Election Day draws near, there is ongoing coverage of how the electorate views the economy and costs. But here are the facts: Annual inflation has fallen to 2.4 percent, its slowest pace since early 2021. The unemployment rate recently dropped to 4.1% With gains of 20.9%, the S&P 500 year-to-date performance is up from recent presidential election years. Consumer morale hit a four-month high in September, driven by more spending and favorable price conditions. And regarding AI, automation continues to be a major point of concern to labor workers who fear replacement. In June, the Kobeissi Letter claimed the AI hype was "stronger than ever." As for what retail traders care about when crafting their portfolios, Public ranked these responses: strong earnings, personal confidence in a company, leadership, transparent communication and familiarity with the brand. See chart below. Now Read: Kamala Harris Beats Trump On Housing Affordability, Renters Say Photo: Shutterstock Market News and Data brought to you by Benzinga APIs

Report: Retail Investors' Viewpoints on the Upcoming Election and Artificial Intelligence

A new report from Public highlights that retail investors remain split on their investing habits in an election year with rising enthusiasm for AI-driven investment research NEW YORK, Oct. 10, 2024 /PRNewswire/ -- Public, an investing platform that lets members invest in stocks, ETFs, crypto, options, and bonds with deep fundamental data and custom analysis powered by AI, surveyed 1,300+ retail investors to compile its annual investor report. The report's key findings dive into investing in AI, using AI for research, and how retail investors are thinking about the upcoming election. Key insights around using AI to conduct research Retail investors are beginning to use AI to conduct investment research, and many plan to adopt AI for investment research in the coming years. 64% of investors believe that AI will be a standard tool for investors in the future.50% of investors are likely to use AI tools in the future to process financial information.38% of investors believe one of the benefits of using AI is that it's quicker to process information compared to Google searches. Key insights around investing in AI Despite NVIDIA becoming a household name for retail investors, investors aren't as excited about other AI companies or technologies when investing in them. 35% of investors state that new AI technology excites them.30% of investors have purchased a company's stock because of its AI capabilities.52% of investors are bullish on AI companies' stock performance. Key insights around investing in an election year Retail investors are split about the election and how it impacts their investing strategies. While most are continuing business as usual, some are adjusting their approach -- either ramping up or scaling back their activity. 63% of investors state that the election does not impact their investing strategy.12% of investors state they are investing more this year due to the election, and 12% say they are investing less due to the election. Key insights around the economy 45% of investors say that the Federal Reserve cutting interest rates does not impact their investing strategy. Access and download the full report here. About Public Public is an investing platform that makes building a multi-asset portfolio fast, secure, and frictionless. Members can invest in stocks, options, bonds, crypto, and a high-yield cash account -- all in one place. Members can also access real-time and historical fundamental data and custom analysis with Alpha, the AI for investors. At Public, we're committed to creating a more transparent investing experience that is consistently aligned with our members' best interests. Disclosures All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Public Investing, Inc., member FINRA & SIPC. Public Investing offers a High-Yield Cash Account where funds from this account are automatically deposited into partner banks where they earn interest and are eligible for FDIC insurance; Public Investing is not a bank. Brokerage services for alternative assets are offered by Dalmore Group, LLC, member FINRA & SIPC. Cryptocurrency trading services are offered by Bakkt Crypto Solutions, LLC (NMLS ID 1828849), which is licensed to engage in virtual currency business activity by the NYSDFS. Cryptocurrency is highly speculative, involves a high degree of risk, and has the potential for loss of the entire amount of an investment. Cryptocurrency holdings are not protected by the FDIC or SIPC. Treasury accounts offering 6 months T-Bills are offered by Jiko Securities, Inc.,member FINRA & SIPC. Securities in your account are protected up to $500,000. For details: www.sipc.org. Banking services and the Bank Accounts are provided by Jiko Bank, a division of Mid- Central National Bank. For U.S. Investments in T-bills: Not FDIC Insured; No Bank Guarantee; May Lose Value. Treasuries risk disclosures, see https://jiko.io/docs/treasuries_risk_disclosure.pdf. See public.com/#disclosures-main Contact Rachel Livingston [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/report-retail-investors-viewpoints-on-the-upcoming-election-and-artificial-intelligence-302272533.html SOURCE Public Market News and Data brought to you by Benzinga APIs