Latest news with #MarcoIachini
Business Insider
10-07-2025
- Business
- Business Insider
Retail investors will lead a $500 billion buying spree that could send stocks soaring through year-end, JPMorgan says
A rush of investor cash is headed for the stock market in the second half, most of it coming from retail investors. That's according to JPMorgan, which predicted this week that investors are poised to inject $500 billion into stocks through the rest of 2025, and most of that will come from retail traders. "Led by retail investors, we envisage an equity buying flow of close to $500bn for the remainder of the year which would be enough to propagate equities by another 5%-10% into year end," analysts wrote in a note on Wednesday. JPMorgan estimates that retail traders have purchased a net $270 billion worth of stocks so far this year, with investors buying assets at a particularly aggressive pace in the first four months of 2025. The bank said it expects another $360 billion worth of retail stock purchases in the second half, based on its December forecast for retail stock purchases to hit $630 billion this year. It said foreign investors could add a net $50-$100 billion to that amount despite concerns that overseas buyers are reducing exposure to US markets amid the turmoil around tariffs and the widening US budget deficit. "We believe that this 'boycotting' of US equities by foreign investors is not sustainable as investors cannot avoid the biggest and most important growth segment of global equity markets," they added, pointing to the rally in the S&P 500 and the strength of the Magnificent Seven tech stocks. Foreign investors may want to see the US dollar stabilize before picking up their interest in US stocks, strategists added. But that stabilization could already be in motion, the bank said, pointing to the US Dollar Index, which has held steady at around 98 in recent weeks. Retail investors have already shown unprecedented enthusiasm for stock buying in the first half of the year, according to Vanda Research, which tracks retail investor flows into stocks and ETFs. In the first six months of the year, cumulative retail net purchases of stocks and exchange-traded funds have been the highest in at least the last 10 years, including during the pandemic stock boom, according to Vanda vice president Marco Iachini. Tech stocks have captured most of the attention. Nvidia was the "most-favored" stock among retail traders in the first half, Ianchini said in a note, with the chipmaker seeing $19.3 billion in inflows over the first six months of the year. That was followed by Tesla, which saw $11.9 billion in inflows, and the SPDR S&P 500 ETF Trust, which took in $6.3 billion.
Miami Herald
10-07-2025
- Business
- Miami Herald
Veteran trader has blunt words for SoFi's latest move
Throughout the course of human history, people have sought the answer to one burning question. Is it worth all the hype? Don't miss the move: Subscribe to TheStreet's free daily newsletter We've all been down that road. Someone is always pushing something at us and promising that this is it, no kidding, whatever it is will be the best thing that ever happened. And we get revved up, expecting all manner of good things to happen, only to be severely disappointed and asking, "dude, seriously?" Retail investors - people who invest their own money - can be influenced by all kinds of hype, which is often driven by social media and online communities. And they've been busy in the first half, cumulatively buying around $3.4 trillion of equities, Morningstar reported, citing data from Nasdaq. At the same time, they sold about $3.2 trillion - bringing the total traded to more than $6.6 trillion. "Retail investors remain a major force in the market," Marco Iachini, Vanda Research's senior vice president of research, said in a note to investors. Bloomberg/Getty Images "Participation is at record highs, the dip-buying bias is fully intact, and engagement with single names - particularly high-beta and leveraged plays - continues to rise." "Performance is holding up and risk appetite is anything but shy," he added. "Nothing seems to stop this retail train." More Tech Stocks: Amazon tries to make AI great again (or maybe for the first time)Veteran portfolio manager raises eyebrows with latest Meta Platforms moveGoogle plans major AI shift after Meta's surprising $14 billion move And the average retail investor is getting younger, according to the World Economic Forum's Global Retail Investor Outlook 2024. Released in March and spanning 13 economies, the study found that 30% of Gen Zers start investing in early adulthood, compared with 9% of Gen X and 6% of Baby Boomers. By the time they enter the workforce, 86% of Gen Zers have learned about personal investing versus 47% of Boomers, underscoring a generational transformation in financial habits, the report said. SoFi Technologies (SOFI) caused some excitement recently. The shares soared on July 8 after the fintech said it was adding new private-market funds, offering exposure to startups like OpenAI, the company behind ChatGPT, and Elon Musk's rocket company, SpaceX. "SoFi is expanding alternative investment opportunities for a new generation of investors," Anthony Noto, CEO of SoFi, said in a statement. The company has expanded access to alternative investments to include new private markets funds from asset managers including Cashmere, Fundrise and Liberty Street Advisors. Over the past year, SoFi said, it has expanded its alternatives offerings by introducing a suite of alternative-investment funds managed by Ark, KKR (KKR) , Carlyle (CG) and Franklin Templeton that provide exposure to private credit, real estate, and pre-IPO companies. The company also partnered with Templum to give members access to privately held companies via Cosmos Fund - with asset classes offering exposure to tech companies like Musk's xAI and Databricks, a data, analytics, and AI company - as well as Pomona Investment Fund and StepStone Private Markets Fund. With investment minimums starting at $10, SoFi says, it is "leveling the financial playing field" and offering a wide range of institutional-grade investment opportunities to more than 10.9 million members. Related: Veteran trader turns heads with SoFi price target update Shares of SoFi, which is scheduled to report quarterly results on July 29, are up about 31% this year and up a vertigo-inducing 216% from this time in 2024. On July 8 Barclays raised its price target on SoFi to $18 from $12 and affirmed an equal-weight rating on the shares as part of a Q2 earnings preview for the consumer finance sector. Card-delinquency trends improved through May, which should help reduce net charge-offs, the investment firm said, according to The Fly. But Barclays said most stocks in the group are trading above historical valuation averages, which sets a high bar for outperformance in Q2. TheStreet Pro contributor Ed Ponsi has picked up on the SoFi buzz and has just one question: Is the excitement justified? Ponsi, managing director of Barchetta Capital Management, profiled SoFi last month with a buy recommendation following a three-month high for the San Francisco company. "Frankly, I'm skeptical about the level of participation one can gain via this method," he said in a recent column. "I'm not trying to throw cold water on SoFi, but I do think retail investors should manage their expectations." He also said that with the market at or near all-time highs and with seemingly no end to the rally in sight, "managing expectations isn't exactly the strong suit of the average retail investor. "Perhaps I'm jaded, but I get the feeling that someone with $10 who is dreaming of a windfall in SpaceX or OpenAI is about to be disappointed," he said. "This promotion seems to be more hype than substance." Nevertheless, Ponsi said the promotion is likely to attract investors. "Novice retail investors will be drawn in, as they might not appreciate the difference between outright ownership and indirect participation," he said. Buying shares in a fund that in turn invests in private companies gives investors only indirect influence over those companies' operations, not the direct voice that comes with votes in publicly traded companies. "Such nuances are likely to be lost in the excitement of participating in something that is seemingly unattainable," Ponsi wr Related: Fund-management veteran skips emotion in investment strategy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
09-06-2025
- Business
- Yahoo
Retail Investors Are Buying AI Stocks, But Not the Ones They Used To
The AI trade is back on after April's tariff rout, but retail investor purchases suggest it's taking a new shape. After a surge in dip buying following April's "Liberation Day" tariff announcement, "there's been a clear shift away from Mag 7+ names" into "second-derivative AI laggards and other higher-risk opportunities," according to a recent analysis of retail investor flows by Marco Iachini and Lucas Mantle at Vanda Research. Nvidia (NVDA), a favorite among retail investors over the last few years, saw large outflows starting in mid-May after shares jumped on easing tensions between the U.S. and China. Purchases of leveraged ETFs, which double or triple Nvidia's daily return, slumped to a 1-year low last month, "though options activity shows no signs of bearish positioning," according to Vanda. "We interpret this as classic profit-taking." Most of the Magnificent Seven stocks are down since the start of the year, but nearly the entire group has sharply rebounded from early April's tariff panic. Retail investors who bought the dip are likely locking in profits from these "core portfolio holdings." While investors are pivoting from the Magnificent Seven, they're not abandoning the AI trade. Rather, investors are piling into smaller data center stocks like Applied Digital (APLD), Navitas Semiconductor (NVTS), and CoreWeave (CRWV), all of which are affiliated with Nvidia. Retail investor purchases of each increased by more than 150% over the past month. Mom-and-pop traders have also been big buyers of quantum computing stocks, a reflection of their substantial risk appetite. In the last week of May, retail investors bought more D-Wave Quantum (QBTS), with its $6 billion market cap, than they did UnitedHealth Group (UNH), a $275 billion company. In the time that investors bought a net $17 million of Meta (META) stock, they funneled $25 million into Rigetti Computing (RGTI). Iachini and Mantle note it's common for retail investors to venture into riskier corners of the market after a successful bout of dip-buying. But plenty of uncertainty about tariff policy and the economic outlook remain despite the market's recent rebound. Retail investors taking on more risk recently, "while not unusual, suggests a level of complacency that may be mismatched with still-lingering macro risks and thus adds to our sense that we are living in the final innings of the current equity rally," they wrote. The market's risk appetite was on full display Monday, with the small-cap Russell 2000 and tech-heavy Nasdaq leading U.S. stock indexes higher. Shares of Navitas Semiconductor were up nearly 25% in recent trading, while CoreWeave advanced 15%. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-01-2025
- Business
- Yahoo
US retail investors dive into tech stocks in response to DeepSeek selloff
By Suzanne McGee (Reuters) - Individual investors responded to the market selloff earlier this week triggered by concerns regarding a Chinese artificial intelligence startup by buying a wide array of technology stocks, according to data released by Vanda Research on Wednesday. Retail investors poured one out of every three dollars of their investments into Nvidia shares in the first days of this week when the AI chipmaker suffered a record one-day loss in market value, according to market tracking firm Vanda. It also reported retail investors were eager purchasers of Tesla, Broadcom and Apple. Investors also snapped up tech-focused exchange-traded funds like the Invesco QQQ Trust and a leveraged ETF offering three times the daily return of the Nasdaq 100 Index. "This buy-the-dip opportunity is proving to be too attractive for individual investors to pass up on," said the VandaTrack report's authors, Marco Iachini, the firm's senior vice president, and Lucas Mantle, vice president. In total, Vanda estimated that between Friday and the market's close on Tuesday, traders poured roughly $4.25 billion of new capital into U.S. financial markets. That boosted the trailing five-day retail inflow average to about $1.3 billion a day, levels not seen since the immediate aftermath of the U.S. presidential election in November.
Reuters
30-01-2025
- Business
- Reuters
US retail investors dive into tech stocks in response to DeepSeek selloff
Jan 30 (Reuters) - Individual investors responded to the market selloff earlier this week triggered by concerns regarding a Chinese artificial intelligence startup by buying a wide array of technology stocks, according to data released by Vanda Research on Wednesday. Retail investors poured one out of every three dollars of their investments into Nvidia shares (NVDA.O), opens new tab in the first days of this week when the AI chipmaker suffered a record one-day loss in market value, according to market tracking firm Vanda. It also reported retail investors were eager purchasers of Tesla (TSLA.O), opens new tab, Broadcom (AVGO.O), opens new tab and Apple (AAPL.O), opens new tab. Investors also snapped up tech-focused exchange-traded funds like the Invesco QQQ Trust (QQQ.O), opens new tab and a leveraged ETF offering three times the daily return of the Nasdaq 100 Index. "This buy-the-dip opportunity is proving to be too attractive for individual investors to pass up on," said the VandaTrack report's authors, Marco Iachini, the firm's senior vice president, and Lucas Mantle, vice president. In total, Vanda estimated that between Friday and the market's close on Tuesday, traders poured roughly $4.25 billion of new capital into U.S. financial markets. That boosted the trailing five-day retail inflow average to about $1.3 billion a day, levels not seen since the immediate aftermath of the U.S. presidential election in November.
