BOSTON – Fidelity Investments’ inaugural State of the American Investor study indicates that nearly two-thirds of self-directed traders anticipate their portfolios will perform consistently or improve in the coming months, even amidst recent market fluctuations.
The study, which analyzed the sentiment and behaviors of investors managing their own portfolios, found that despite nearly half of self-directed investors predicting a market downturn over the next 12 months, 64% believe their personal portfolios will perform the same or better. This confidence translates into action, with nearly half of surveyed self-directed investors viewing market dips as opportunities for increased investment. This behavior aligns with Fidelity’s own trader data, which showed a buy-sell ratio of 1.83 during market upheaval in April 2025.
Josh Krugman, SVP, brokerage at Fidelity Investments, commented, “Navigating shifting market conditions can be daunting for even the most experienced investors. Whether they’ve been investing for more than a decade or only recently started trading, the strength of Fidelity’s platform and the depth of our capabilities provide traders with the tools, timely insights, and resources they need to be confident investors.”
The study also highlighted a divergence in priorities and risk tolerance between tenured investors (over 10 years of experience) and newer investors (five or fewer years). Nearly half of tenured investors prioritize limiting losses in the year ahead, aiming for more stable investments and indicating a lower risk tolerance in 2025. Conversely, newer investors primarily focus on advancing their knowledge of new asset types or complex trading strategies, with nearly half seeking higher-growth stocks in 2025.
Newer investors also demonstrate greater familiarity and confidence in non-traditional assets, with 69% confident in investing in such assets compared to 29% of seasoned investors. Seventy-two percent of newer investors are familiar with crypto, versus 35% of seasoned investors. Additionally, newer investors are five times more likely to plan on using margin and option trading strategies for the first time in the next 12 months. This contrasts with tenured investors, who are more familiar with traditional income vehicles like dividend-paying stocks and high-yield money market funds. The study noted a correlation between experience and outlook, with more experienced traders expressing less optimism about future market and portfolio performance, though 69% of them acknowledge market volatility as expected, compared to 46% of newer investors.
Regarding investment advice, more than one-third of newer investors rely on social media for most of their investing decisions, a figure significantly higher than the 1-in-10 among tenured investors. The study cautions that nearly half of newer investors have made poor investment decisions based on social media information, underscoring the importance of reputable sources for education and trading insights.
The study further identified characteristics of successful investors, noting that 86% of self-directed investors reported feeling successful in recent years. Successful investors are less likely to sell during market dips and are more inclined to view volatility as expected. They prioritize historical performance when making investment decisions, whereas less confident investors tend to focus on general market sentiment, news coverage, social sentiment, or influencer recommendations. Additionally, 85% of self-described successful investors are comfortable with the amount of risk they take, compared to 67% of “unsuccessful” investors.
Mr. Krugman added, “Identifying the right mix of investments to meet financial goals constantly evaluating risk and reward. Often, we hear from clients that they want help understanding how to take advantage of more advanced strategies like income generation from fully paid lending or exploring multi-leg options trades. Our platform combines the education, insights and trading tools these clients need to build confidence and feel successful.”
Fidelity offers various resources to support investors across all experience levels, including Fidelity Viewpoints® for market and economic perspectives, Fidelity’s Trading Strategy Desk® for professional guidance and daily market briefings, and the Options Strategy Builder for options expertise. Other tools include the Fixed Income Dashboard for managing bond income streams, Covering Crypto Livestreams for crypto analysis, the Fidelity Trading Dashboard for live market data, and weekly Market Sense webinars for macroeconomic analysis.
The 2025 State of the American Investor Study was based on an online survey of 2,007 U.
S. adults conducted from April 15-24, 2025, by Big Village. Participants had a household income of $25,000 or more, at least $25,000 in investable assets outside of retirement and real estate, and used at least one financial firm or online trading platform for non-retirement investing. Fidelity Investments, a privately held company for 79 years, had assets under administration of $16.4 trillion, including discretionary assets of $6.4 trillion, as of June 30, 2025.
