According to the latest report from investment and trading platform eToro, financial service stocks and cash are currently favored by US retail investors. In the company's latest Retail Investment Beat (RIB) report released on Wednesday, 54% of investors said they held financial service stocks, followed by 49% for technology stocks, 39% for energy stocks, and 36% for communication stocks.

The regional banking epidemic triggered by the collapse of Silicon Valley Bank (SIVBQ.US) last year has led to lower trading prices of financial industry stocks such as Charles Schwab (SCHW.US), US Bancorp (USB.US), and PNC Financial Services (PNC.US) than before the crisis, which has attracted value investors.

The technology sector is still favored.

After the surge of artificial intelligence stocks led by chip maker Nvidia (NVDA.US), technology stocks are obviously a target. However, eToro's report shows that some investors may be concerned that they have missed the opportunity. 76% of American investors say they prefer to hold cash, but 22% of investors say they will increase their bets on technology stocks.

Cryptocurrencies are more popular among investors aged 18-34, with 26% of investors saying they will increase their digital investment portfolios compared to other assets. Among these young investors, some have tasted the negative impact of market fluctuations for the first time. 63% of them say they will be more cautious after losses, while only 22% of investors aged 55 and over hold this view.

Inflation is seen as the biggest threat to investment portfolios.

At the same time, 43% of young investors say they are more inclined to buy on dips, compared to 16% for older investors. Although recent US inflation has eased somewhat, 30% of investors say inflation is the biggest threat to their investment portfolio, followed by the economy (21%) and high interest rates (11%).

eToro's US investment analyst, Bret Kenwell, said:"Given that US interest rates are still high, it is not surprising that investors are inclined towards cash assets for stable risk-free returns." He added:"The cash held by investors puts them in a favorable position when market opportunities arise."