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Yahoo
10-07-2025
- Business
- Yahoo
Retail investors will lead a $500 billion buying spree that could send stocks soaring through year-end, JPMorgan says
Retail investors will lead astock-buying spree in the second half of the year, JPMorgan strategists say. That will be led by retail investors, who aggressively bought stocks at the start of 2025, the bank said. Retail bought stocks more aggressively this year than during the pandemic, according to Vanda Research. 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 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. Read the original article on Business Insider 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
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.
Yahoo
08-06-2025
- Automotive
- Yahoo
Retail Investors Pile Into Tesla (TSLA) After 14% Plunge on Trump-Musk Rift
Retail traders aggressively bought Tesla (TSLA, Financials) shares Thursday after the stock plunged 14.3%its 11th worst day since going publicamid a very public feud between CEO Elon Musk and U.S. President Donald Trump. The stock rebounded 5.6% Friday to around $299.14. Vanda Research data showed self-directed investors net purchased $201.3 million of Tesla shares after trading $2.6 billion in volume, making it the second-most bought stock by that group. Traders also poured $41.5 million into the Direxion Daily 2x Bull ETF, a leveraged fund that tracks Tesla. Despite the sharp selloff, the options market showed little panic. Tesla's 30-day implied volatility rose to 77, up from earlier levels but well below the 106.1 peak in April. Chris Murphy of Susquehanna said some traders capitalized on the volatility by selling puts, a sign of confidence that the slide might stabilize. Buy the dip is the overwhelming sentiment, said Marco Iachini of Vanda, citing social media scans on Reddit and X, where Tesla remains a retail investor favorite. Tesla shares had surged 90% following Trump's election win in November, but are now down about 37% from their Dec. 17 peak. This article first appeared on GuruFocus. 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
Reuters
06-06-2025
- Automotive
- Reuters
Retail traders scooped up Tesla as Trump-Musk spat hit stock
NEW YORK, June 6 (Reuters) - Retail investors seem to have spotted an opportunity in the sudden feud between U.S. President Donald Trump and his former ally, Tesla (TSLA.O), opens new tab CEO Elon Musk, scooping up shares of the electric car maker as they tumbled on the acrimonious standoff. Trump on Thursday threatened to cut off government contracts with Musk's companies, as the once-close ties between the world's richest and most powerful man unraveled publicly on their rival social media platforms in a feud over the president's sweeping tax-cut bill. Tesla's stock plunged 14.3% on Thursday, the 11th worst daily drop since the company went public in June 2010. As retail traders hunted for bargains, the stock rose 5.6% to $299 at mid-afternoon on Friday, though it was unclear how much of a role they played in the rally. Self-directed individual investors scooped up a net $201.3 million of Tesla stock on Thursday after buying and selling $2.6 billion, Vanda Research estimated, making Tesla the day's second most-actively purchased stock by such investors. "Tesla has been a favorite holding for this group for a while, so when they see a drop of 14% or more, they jump in and buy," said Marco Iachini, senior vice president of research at Vanda, noting retail investors' renewed appetite for risk-taking. Such investors also poured money into leveraged exchange-traded funds that offer a chance to place a bullish bet on Tesla shares for amplified returns. The Direxion Daily 2x Bull ETF (TSLL.O), opens new tab drew $41.5 million of net buying on Thursday, according to Vanda data. The options market, where Tesla is a favorite with retail traders, showed few signs of panic. "We're not seeing a huge move in volatility," Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, said of Thursday's trading, adding that some traders were taking advantage of the increased volatility to sell put options. Selling puts, which give the buyer the right to sell the underlying shares by a certain time at a set price, signals expectations for the stock price to slow or halt its slide. Tesla's 30-day implied volatility - an options-based measure of how much traders expect the stock to swing in the near term - rose to a six-week high of 77 on Thursday, well below the 106.1 touched in early April during a market-wide selloff, Trade Alert data showed. With Tesla shares up 5% at $299.14 on Friday morning, the implied volatility measure sank further to 68. "I don't think we're at the real warning sign levels at the moment," Interactive Brokers chief strategist Steve Sosnick, said. Iachini said he used models to scan comments about Tesla on social media sites like Reddit and X during Thursday's selloff, and found that users of the sites, which are popular with self-directed investors, overwhelmingly remain bullish on Tesla. "Buy the dip is the overwhelming sentiment," he said. Tesla shares, which surged as much as 90% in the six weeks following Trump's November 5 election, have slipped about 37% since they peaked on December 17.
Yahoo
07-05-2025
- Business
- Yahoo
Palantir stock: Institutional vs. retail trading trends
00:00 Jared Palantir is having its worst day in exactly one year. And the reason is just the same as it was 12 months ago. A big disappointment on some key earnings metrics. So, let's dive in and see how retail traders have been trading this stock over that time period. I'm Jared Blickre, host of Stocks in Translation. First off, this is a year-long chart. In white, we have the price performance of Palantir stock that I'm tracing along right now. And in the green, we have a line from Vanda Research. This tracks retail participation and retail buying. It is a 10-day moving average offset buying. And you can see there's kind of a cyclicality to it. And a lot of times when price goes up, you'll also see this retail buying move up. And that means that retail traders are supporting the price movements. But it's not always the case. Sometimes it's institutions that are supporting it. So, this is a six-month chart, and we're using a five-day moving average, so it's a little bit more volatile. And here we have in white, still, this is Palantir, and there's that same bull pattern that I was just highlighting. And in green, we have that five-day moving average of the flows. Now, what's interesting, and a representative from Vanda Research pointed this out to me, just take this price example, we had a little bit of a dip in price, then a recovery, and at the time, this was a recovery to brand new highs, and we didn't really see retail join the party until it broke to new highs. And actually, before that, they were selling. So, it was institutions that were supporting the price, and then retail was chasing the move. And that's kind of important. Sometimes people say retail is always chasing, but I found that's not always the case. So, I want to dig a little bit deeper into the price action over the last three days, because as I said, we had a huge dip in Palantir, about 10% drop. This chart goes three days back, and I have Palantir here in white again. Here's that drop, and we can see that today, there was a little bit of a recovery. Now, I have both large player and small player effective volume. Now, these are different measurements that what we were tracking with Vanda just a minute ago. This happens to be the discovery of Pascal Willemain, and he has something called effective volume. And he breaks down the price action into small player and large player. So, the small player is a retail player. And what I want to show you here is in green, the institutions were selling, they were selling that dip in the morning, and retail was buying, and then retail sold. So, retail's kind of driving the trade up and then down, maybe day trading. Meanwhile, institutions, once we had that second dip into the morning, or once we got to that high, rather, they have been supporting price since. So, it looks like the large players, the institutions, have stepped in a bit. So, Palantir is one of those retail darlings, and we've seen a lot of retail excitement over it in fits and starts. It's a day trading favorite. And sometimes retail, sometimes retail traders are the impetus for the moves that we see in the stock, and sometimes it's the institutions. Today, I think it's kind of a mix of both.
