Retail investor risk appetite has improved in 2021, with AI stocks leading the way. According to a recent survey by online broker TD Ameritrade, retail investors are increasingly looking for higher-risk investments as they seek out opportunities to grow their portfolios.
The survey found that more than half of all retail investors (51%) have increased their exposure to high-risk investments over the past year. This is up from just 33% who said they had done so in 2020. The most popular type of high-risk investment among these investors was AI stocks, which accounted for nearly one third (30%) of all new investments made by this group during the period surveyed.
AI stocks have been particularly attractive to retail investors due to their potential for rapid growth and returns on investment. In addition, many believe that artificial intelligence will be an important driver of economic growth in the coming years and could lead to significant gains for those who invest early enough.
However, it’s important for retail investors to remember that investing in any stock carries some degree of risk and should not be taken lightly or without proper research into the company behind it before committing funds. Additionally, while AI stocks may offer great potential rewards, there is also a chance that they could underperform expectations or even fail altogether if certain conditions are not met or if market sentiment changes suddenly against them.
In order to mitigate risks associated with investing in AI stocks – or any other type of stock – it’s important for individual investors to diversify their portfolio across different asset classes such as bonds and cash equivalents as well as equities like AI stocks; this can help reduce overall volatility within a portfolio while still allowing access to potentially lucrative opportunities when available. It’s also wise for individuals considering investing in any particular stock – including those related to artificial intelligence –to consult with financial advisors prior making decisions about where best allocate capital resources within a portfolio context .
Overall ,the findings from TD Ameritrade’s survey suggest that despite some lingering uncertainty surrounding global markets due largely pandemic -related concerns ,retail investor confidence appears strong enough support continued allocations towards higher -risk assets such as Artificial Intelligence Stocks . As long individual remain mindful possible downside scenarios associated with these types securities ,they may find themselves well positioned capitalize on future upside potential offered by companies developing cutting edge technologies .