US investors embrace market volatility as a buying opportunity
One in three non-retired investors said they plan to take advantage of investment opportunities over the next 12 months; up sharply from 21% in the summer of 2024. More than one in five said they intend to manage their investments more aggressively, compared with 16% two years prior.
Participation, not timing
Mark Hackett, chief market strategist for Nationwide’s Investment Management Group, attributed this behavioral shift to a changing interpretation of what volatility actually signals.
“Investment markets reached all-time highs this summer in the face of elevated volatility, reflecting a shift in how investors are interpreting uncertainty. Rather than viewing volatility as a signal to step aside, many may be viewing it as an opportunity to be offensive versus the historic instinct to turn defensive,” said Hackett. “We’re seeing them use these periods of volatility to rebalance, diversify and position themselves for future growth, recognizing that participation, not timing, is often the key driver of long-term outcomes.”
The data also shows a modest stabilization in long-term retirement planning sentiment. Just 15% of non-retired investors said they plan to retire later than expected, down from a peak of 22% in 2024. The share of investors who believe they may never be able to retire fell to 11%, from a high of 16% two years ago.
The protection gap advisors must address
Nearly three in ten non-retired investors said they have no formal strategy to protect their assets against market risk, and one in ten said they were unsure whether they did — a finding that points to a significant gap in advisor-client communication around risk management.
