The artificial intelligence (AI) sector is booming, with companies like Nvidia, Super Micro Computer, and Micron Technology experiencing significant gains. The 2024 presidential election is also gearing up to be a heated contest, with high stakes for the nation’s future. However, a recent survey by investing platform Public reveals a surprising trend: retail investors seem to be largely indifferent to both of these major developments.
While AI companies are making headlines and outperforming broader market indices like the S&P 500, a majority of retail investors surveyed by Public aren’t particularly excited about AI stocks. Only 35% of respondents said new technology excites them, and just 30% have purchased a company stock specifically because of its AI capabilities. However, a larger proportion (64%) believe AI will become a standard tool for research in the future, and 50% anticipate using it to process financial information.
The contentious presidential election, pitting Republican Donald Trump against Democratic Vice President Kamala Harris, also appears to have minimal impact on investor sentiment. While a small segment of investors are adjusting their portfolios based on election predictions, a majority (63%) say the election doesn’t affect their investing strategy. This indifference extends to economic data as well, with a near 50/50 split among investors on whether Federal Reserve data impacts their investment decisions.
This apathy toward economic and political developments is noteworthy, especially considering the Biden-Harris administration has been grappling with public perception of the economy for months. Despite positive economic indicators, including falling inflation, a low unemployment rate, and strong S&P 500 performance, investors seem more focused on other factors.
When asked what matters most to them when making investment decisions, retail investors prioritized: strong earnings, personal confidence in a company, leadership, transparent communication, and familiarity with the brand. This suggests that traditional factors continue to hold sway over the perceived hype of AI and the political landscape.
It’s important to note that automation driven by AI remains a concern for labor workers who fear job displacement. As AI continues to advance, it will be interesting to see how this dynamic evolves and whether retail investors will remain unfazed or shift their focus in the future.
