Broker eToro has unveiled the results of its latest Retail Investor Beat survey.

The Retail Investor Beat survey surveyed 10,000 retail investors from the UK, US, Germany, France, Australia, Italy, Spain, the Netherlands, Denmark, Norway, Poland, Romania, and the Czech Republic.

Data from the Retail Investor Beat survey showed that 27% of retail investors intend to reduce their equity investments in large technology companies in the so-called 'Magnificent Seven' in 2024.

In addition, 11% of respondents said they plan to sell some of their shares in the "Magnificent Seven" (which includes Amazon, Apple, Microsoft, Meta, Tesla, Nvidia, and Alphabet) this year, locking in profits and reducing exposure to these stocks. Another 16% of respondents said they would reduce the amount of new capital invested in these companies in the coming months.

"Over the summer, the Fed, ECB, and Bank of England will move from hope to reality as they all take action to lower global interest rates. This will help support the economy, earnings growth, and stock market valuations while encouraging a rotation away from the US and large tech stocks towards more economically sensitive and cheaper areas such as real estate, small stocks, and emerging markets.

"As our latest Retail Investor Beat data shows, a significant number of retail investors want to get ahead of this trend by adapting their portfolios accordingly while locking in gains from the Magnificent Seven," commented Ben Laidler, eToro's Global Markets Strategist, on the research data.

The report showed that the majority of global retail investors are adapting their strategies in light of the changing economic backdrop, with 53% planning to balance their portfolios ahead of the predicted rate cuts and potential market rotation.

Investors aged 18-34 (71%) and only 37% of those aged over 55 intend to rebalance their portfolios.

Among those who plan to rebalance their portfolios, the most common change in asset allocation will be an increase in equity investments (48%), followed by a decrease in cash (36%).

However, 23% said they would increase their investment in the Magnificent Seven, while 34% plan to maintain their current allocation to these stocks.

In addition, retail investors will prioritize sectors such as technology (18%) and financial services (12%) in 2024.