Rising inflation remains a greater external risk for Polish retail investors than the international conflict

Polish individual investors remain immune to drops in the stock market and fears of recession. From the latest research "Puls Inwestora Indywidualnego", carried out by the network of social investments eToro shows that more than eight in ten (82%) maintain or increase their investments during a bear market.

• Inflation is the biggest external risk for 66 percent. Polish individual investors; international conflict remains a problem for 41%
• Only 18 percent. investors sold their investments during the recent falls on the stock market, 47 percent. survived on the market, and another 35 percent. bought inheritance
• Investors increased exposure to commodities (25%), domestic stocks (22%), cryptocurrencies (20%) and cash (17%)
• Nearly 36 percent declared that it will invest the same amount in the next three months, and 36 percent. plans to invest more

Individual Investor Pulse study

Only 18 percent. Polish investors surveyed sold their investments during the recent falls on the stock exchange, while 47 percent. maintained its position, and 35 percent. bought in times of decline. Globally, the survey found that less than one in ten respondents (8%) sold their investments during the recent stock market downturn, two-thirds (64%) held their positions, and another 28%. bought during this period.

Polish investors remain calm in the event of market declines. Admittedly, they were even twice as likely to get rid of their assets during the current market sell-off than the average investor from among the 12 countries surveyed. But at the same time, they took advantage of the opportunity to buy and increase their involvement more often than investors in other countries. This corresponds with the emerging research image of the Polish investor as a seeker of good investment opportunities. - comments Paweł Majtkowski, eToro market analyst.

Nearly 68 percent Polish investors are people who have been operating on the market for 5 years or less, which means that the current correction (and now a bear market) in the market is their first experience of long-term declines on the market. In these difficult times, the challenge remains risk management, getting in control of your emotions and focusing on long-term investment goals. Our research shows that Polish investors are coping with it quite well, building diversified investment portfolios. Additionally, declines of around 20% were an opportunity for 1/3 of investors to buy, which means that they believe that the bear market may be shallower and shorter than the average, which historically lasted usually 19 months and closed with declines of 38%.

What's in the basket?

In light of the recent market volatility, 25 percent. Polish investors increased their exposure to raw materials, then chose domestic bonds (22%), kryptowaluty (20%), cash (17%), alternative investments (17%), foreign stocks (14%), domestic stocks (13%), foreign bonds (13%) and currencies (13%). ).

Looking at individual sectors, 28 percent. Polish investors have invested more in the energy sector, 25 percent. was bought by the technology sector, 23 percent. - raw materials, 22 percent - real estate, 22 percent - basic consumer goods, 22 percent - financial services, 21 percent - industrial sectors. Nearly 17 percent invested in the utilities sector, 15 percent. - in telecommunications, 15 percent - in health care, and 13 percent. focused on luxury goods.

On a global scale, the confidence of individual investors in their investments within five quarters of the launch of eToro's Retail Investor Beat, consistently decreased: from 83% to in the second quarter of 2021, 81 percent. in the third quarter of 2021, 80 percent. in the fourth quarter of 2021, 73 percent. in the first quarter of 2022 to 72 percent. at the end of June this year. On the other hand, among Polish investors, confidence in investments fell from 81 percent. in the second quarter of 2021, 82 percent in the third quarter of 2021, 77 percent in the fourth quarter of 2021, 76 percent in the first quarter of 2022 to 71 percent at the end of June this year.

Inflation is the biggest risk

Inflation remains the main concern of Polish investors - 66 percent. (up from 59% in Q2022 XNUMX) sees it as the greatest external risk to its investments in the next three months. Next on the list are: the international conflict, important for 41% of people. (from 56% in the first quarter). The condition of the Polish economy is worried by 33 percent. of respondents (a decrease from 40% in the first quarter), and growing interest rates - 31%. (an increase from 30% in the first quarter). The state of the world economy worries about 26%. investors (down from 29% in the first quarter).

Inflation remains the biggest concern for the Polish investor. In the previous survey, concerns about the situation and the conflict increased significantly due to Russia's invasion of Ukraine international. However, it can be said that, unfortunately, we have already got used to this risk. Inflation, on the other hand, continues to grow, reaching 15,6% recently. And this is not the end of its growth, so it will surely remain the greatest concern of investors in the coming quarters. - says Paweł Majtkowski.

Despite these threats, 36 percent. Polish respondents plan to invest the same amount of money in the next three months, and another 36 percent. expects to invest more. As much as 38 percent believes that energy will continue to be the best opportunity to buy an investment in the next three months. Next in the ranking are real estate (32%), technology (32%), financial services (18%), materials (18%), industry (17%), utilities (15%), basic consumer goods (14%), healthcare (11%), telecommunications (9%) and consumer goods (8%).