In addition to buying stocks directly, ETFs are also an important investment channel for retail investors, with a total net inflow of US $53 billion as of November last week. Buying the S & P 500 index now means paying $2.69 for every $1 in revenue, which is far from the Internet bubble era.
Jerry braakman, chief investment officer of first American trust, said there was no event this year that could warn retail investors not to invest so crazily. Every moment is an opportunity to buy the bottom, and retail investors can get rewards as soon as they rush in. People all have path dependence. What can we do to change our behavior?
From another point of view, retail investors are not only logical, but also make a lot of money. For example, Western oil rose 83.79%, Boeing increased 51.32%, Carnival Cruise rose 47.56%. According to Goldman Sachs, retail preferred stocks rose 75% in the year, 60 percentage points higher than the S & P 500 index and double the yield of hedge fund preferred stocks.
Sameer Samana, a Wells Fargo global markets analyst, said retail trading strategies have worked this year and will encourage them to double their bets with higher leverage. At present, the market is mainly driven by vaccine news, still constructive economic data, and positive support from the Federal Reserve, which will also increase the market sentiment about no matter how you fry it.
Chris Larkin, director of trading and products at e * trade, a retail trading platform, said traders on the platform had begun to increase their positions in the tourism sector in the past week, with Boeing and American Airlines both showing net new positions. Retail investors are also interested in vaccine manufacturers and large retailers, and are also selling home concept stocks such as apple and Netflix.
The catch-up and early 2000 cycle of high-tech stocks is different from that of high-tech stocks at the beginning of 1999. Whats more, the Fed has no expectation of raising interest rates in the near future.
LeutholdGroup analyst DougRamsey pointed out that the bubble level of the NASDAQ and Russell 1000 growth index is lower than that at the beginning of September, mainly due to the fact that early retail investors were concentrated in speculation.
Source of this article: Yang Bin, editor in charge of CFA_ NF4368