Retail Investors Buy Tesla, Palantir, and Bitcoin ETFs in Massive Batch, Becoming Big Winners on Trump's Release Day | Abmedia News Series
Retail investors went on a record-low accumulation spree on Monday, mirroring the plunge in US stocks caused by Moody's downgrade of the US's credit rating at the end of last week. According to JPMorgan Chase data, retail investors rushed to buy Tesla and the popular Palantir on Monday, and also invested cash in Bitcoin ETFs, becoming the biggest winners since Trump's release date.
Retail Investors Have Been Buying US Stocks Since April
The S&P 500 was hit by Moody's downgrade of the US credit rating at the end of last week, falling about 1.1% in early trading on Monday, but rebounded by the afternoon, trading essentially flat as of 2:50 p.m. in New York. Retail investors accounted for 36% of trading volume, surpassing late April, and reached an all-time high. According to Bloomberg, citing JPMorgan Chase data, individual investors poured $4.1 billion into U.S. stocks at 12:30 p.m. New York time, setting a record for the period and crossing the $4 billion mark for the first time in history.
The buying continued the momentum of retail investors buying U.S. stocks for weeks. Retail investors rushed to buy stocks at a record pace amid the tariff-induced bear market in April. Now, with the index up 20% and entering a bull market, they are enjoying the upside. Meanwhile, the so-called "smart money" remains a wait-and-see attitude.
Wall Street Analyst: Don't Run Moody's Downgrades, Buy the Dip
On Monday, Wall Street analysts mostly disagreed with Moody's statement about downgrading clients and advised clients to continue buying stocks. Michael Wilson, a strategist at Morgan Stanley, said investors should buy into the decline in U.S. stock markets resulting from the downgrade, as the U.S.-China trade truce reduces the likelihood of a recession. Max Kettner, chief multi-asset strategist at HSBC Holdings Limited, said his team sees any decline in risk assets as an opportunity to expand exposure.
“I think what retail investors should intuitively do is allocate their money to where they can achieve the most risk-adjusted returns,” said Vincent Lorusso, CEO and portfolio manager at Clow Capital Partners. He said buying stocks is smart now, amid low inflation and strong corporate and consumer balance sheets.
Retail investors are buying Tesla, Palantir, and Bitcoin ETFs
According to JPMorgan, the total amount of retail investors buying individual stocks was $2.5 billion on Monday, while the amount of exchange-traded funds bought was $1.5 billion. Investors are rushing to buy the popular Tesla and Palantir, with inflows of $675 million and $439 million, respectively. They have also put cash into Bitcoin ETFs while continuing to be net sellers of Nvidia. (Palantir's new valuation reaches $281 billion, ranking it among the top US tech companies.)
Risk Warning: Cryptocurrency investments are extremely risky. Prices can fluctuate significantly, and you could lose all of your capital. Please evaluate the risks carefully.
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