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| Economy |
| Retail investors are chasing the rally in the stock market. Here's exactly what they're buying. |
| 2023-07-08 |
| [Business Insider] Retail investors are finally starting to buy into the stock market rally that began nine months ago and helped power the S&P 500 higher by nearly 30%. According to a Thursday note from Vanda Research, retail investors are piling into both individual stocks and equity ETFs, suggesting that they are not only bullish on specific themes but are also getting more bullish on the broader stock market. "The monthly net inflows into US equities are now averaging $1.4 billion per day, close to the all-time record of last March ($1.5 billion per day)," Vanda Research said. "While it may be difficult to see a further increase in the pace of cash equity purchases from these levels, there is still room for more speculative buying in the options space." Within the individual themes of the stock market, Vanda Research observed that a rotation appears to be picking up as retail investors shift their buying power away from artificial intelligence stocks and towards electric vehicle stocks, with the change likely being sparked by Tesla's recent second-quarter delivery numbers. "Retail investors often rotate between themes as they get excited by short-term trends, and the recent beat in Tesla deliveries could be the catalyst to drive an increase in exposure to other EV names," Vanda Research said. Retail demand for stocks like C3.ai is starting to wane, while a jump in buying pressure has recently been observed in EV names like Rivian, according to the note. |
| Posted by:Besoeker |
| #3 Or playing the game - as the amateurs did on Gamestop and hammered the 'pros' trying to short it. |
| Posted by: Procopius2k 2023-07-08 17:51 |
| #2 All that ‘printed’ money has to go somewhere- much is just buying stocks: stock prices are inflating just like grocery prices. |
| Posted by: Glenmore 2023-07-08 11:29 |
| #1 The US markets are a very weird place post-Covid. No one in the Biden Administration is helpful in understanding them. My favorite observation of the week was someone making the point that you can’t force all the businesses to shutdown more or less, relent at some point, and claim that as companies rehire people that the government is engaged in job creation. |
| Posted by: Super Hose 2023-07-08 08:41 |