Friday, July 1

Retail Investors Take Advantage Of Omicron Corrections On Wall Street

Not all bad news is bad news, and many on Wall Street know that. Many retail investors took advantage of corrections for the new variant of covid-19, Omicron, to take advantage of and shop in the falls according George Steer en Financial Times.

“Investors invested $ 10 billion in equity funds that held U.S. stocks, based on a 10-week entry streak, ”according to the EPFR data provider.

Retail investors were particularly active in buying US stocks on days when markets were reeling, a separate report compiled by VandaTrack.

The fall of late November

Global stocks were hit by their toughest declines in more than a year on November 26, with the S&P 500 falling more than 2%, due to concerns about the variant of the Omicron coronavirus. However, the retail investors bought more than $ 2 billion worth of U.S. stocks that day, as VandaTrack data shows. A similar situation unfolded last week, when retail investors amassed $ 2.2 billion in U.S. stocks during a drop triggered by US stocks. aggressive comments from Federal Reserve chief Jay Powell.

Stocks, including Apple, Advanced Micro Devices and Microsoft, benefited from changes by retail traders.

Such buying activity echoed the trading patterns that followed the emergence of the Delta variant earlier this year, when stocks around the world fell in response to concerns about rising infections.

A popular investment model

Recent flurries of stock buying among retail investors suggest that buy in the fall (investing in stocks that have recently lost value) is still a popular strategy among amateur operators.

Nicholas Colas, co-founder of the DataTrek research house, said that “retail investors had become an important part of the US equity market ecosystem.” The prominence of these investors has grown during the pandemic as more investors have turned to apps like Robinhood to bet on stock prices.

Still, the VandaTrack data showed that the total retail volumes They were “materially lower” than in the early stages of the pandemic, largely due to a decline in the number of daily investors using retail brokerages since the beginning of the year. “The ones that remain are staunch bulls,” VandaTrack said.

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