Retail investors are “aggressively” chasing the stock market rally, according to Vanda Research.
The buying included both individual stocks and ETFs, suggesting they are bullish in the broader stock market.
“Monthly net inflows into US equities now average $1.4 billion a day, which is near an all-time high,” Vanda Research said.
Retail investors are finally starting to buy into the stock market rally that began nine months ago and helped lift the S&P 500 nearly 30%.
According to a Thursday note from Vanda Research, retail investors are crowding into both individual stocks and equity ETFs, suggesting they’re not just bullish on specific themes, but becoming also more bullish on the broader stock market.
“Monthly net inflows into US equities now average $1.4 billion a day, close to last March’s all-time high ($1.5 billion a day),” Vanda Research said. “While it may be difficult to see a further increase in the pace of cash stock buying from these levels, there is still room for more speculative buying in the options space.”
Within individual stock market themes, Vanda Research observed that a rotation appears to be accelerating as retail investors shift their buying power from artificial intelligence stocks to electric vehicle stocks, with the shift likely to be sparked by Tesla’s recent second quarter. delivery numbers.
“Retail investors often alternate between themes as they get excited about near-term trends, and Tesla’s recent delivery pace could be the catalyst for increased exposure to other EV names.” , said Vanda Research.
Retail demand for stocks like C3.ai is starting to decline, while increased buying pressure has recently been seen in electric vehicle names like Rivian, according to the note.
These are the top 10 stocks that retail investors have bought the most over the past five days, according to Vanda Research.
Net retail purchases: $52.0 million
9. Micron Technology
Net retail purchases: $56.3 million
Net retail purchases: $62.1 million
7. Meta platforms
Net retail purchases: $62.9 million
6. Alphabet letters
Net retail purchases: $66.4 million
Net retail purchases: $135.7 million
4. Advanced microdevices
Net retail purchases: $211.2 million
Net retail purchases: $233.9 million
Net retail purchases: $255.2 million
Net retail purchases: $1.2 billion
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