Latest news with #VandaTrack
CNBC
a day ago
- Business
- CNBC
Retail investors outplayed fund managers over tariffs: Robinhood CEO
Retail investors, once dismissed as speculators, are now outmaneuvering professional fund managers by adhering to a simple strategy: buy into companies you believe in for the long haul, according to Robinhood's CEO. Institutional investors have spent the weeks since April 2's so-called "Liberation Day" worrying over macroeconomic signals and taking "risk off across the board," Vladimir Tenev told CNBC's "Squawk Box Europe" Tuesday. The S & P 500 fell sharply in the aftermath of the tariff announcements as institutional investors fled to perceived safe havens. The index has now not only surpassed its pre-tariff high of 5670, however , but has also rallied by 25% to 6237 since its bottom on April 8. Retail investors bought the dip — and won, Tenev said. Data from VandaTrack shows retail investors piled $85 billion into U.S. equities and ETFs between April 1 and July 7 — the highest on record, compared to the same period every year since 2021. Tenev contrasted this with institutional players who "think about stocks indirectly," often selling off assets based on macroeconomic factors like tariff news or perceived headwinds from a lack of tax cuts. Contrastingly, "what you're seeing is retail investors are investing in these companies because they believe in them," Tenev said, calling it a "back to the basics" approach. He added that investors on Robinhood's brokerage platform were particularly focused on stocks such as AI darling Nvidia , alongside Tesla and Amazon , for instance. "So when they see a massive macro-driven dislocation, they tend to look at that as a buying opportunity, because it doesn't affect the market positioning of these individual stocks on an idiosyncratic basis," he added. This conviction-led strategy is a significant divergence from the behavior of retail investors in the past, which is "healthy for the markets," Tenev said. .SPX YTD mountain
Yahoo
30-06-2025
- Business
- Yahoo
A chaotic 6 months for stocks shows investors are still leaning 'bullish' headed into the second half of 2025
The S&P 500 (^GSPC) rode a bumpy path to end the first half of 2025 at a record high. After falling more than 19% in April from its previous all-time high, the benchmark index ripped to new records just two months later as the market's worst fears about the impact of President Trump's tariffs evaporated. Still, it hasn't been a clean run higher for the benchmark index. Fears over AI competition from China, tariffs' impact on the growth outlook for American corporates, and increasing tensions in the Middle East have all tested the market's chug to new records. Overall, stocks have largely shrugged off such concerns, with investors continuing to buy the dips and bid them higher. "The market still does tend to have a bullish sentiment to it," Charles Schwab head of trading and derivatives strategist Joe Mazzola said in an interview. "So I think you're seeing investors looking for those opportunities on pullbacks to buy in." There was perhaps no better evidence of market resilience than Trump's "Liberation Day" tariff announcement on April 2. The S&P 500 fell more than 10% in three days, with the rout ranking just below the top 10 worst sell-offs since World War II. But in roughly a month, the benchmark index was back above levels seen before the announcement as markets cheered Trump's various tariff delays. A large part of inflows back into stocks came from retail investors, including a record $3 billion in net purchases on April 3, per VandaTrack Research's data that dates back to 2014. "[There's a] certain feeling of invincibility that's crept into the mindset of a lot of traders, a lot of active investors," Interactive Brokers chief strategist Steve Sosnick said in an interview on June 16. "And it's understandable, because why wouldn't you? I mean every dip ... can be considered a buying opportunity." And now with the market back at record highs, many on Wall Street have argued for stocks to keep moving higher by the end of the year. Fundstrat global head of technical strategy Mark Newton pointed out to Yahoo Finance that many money managers are benchmarked to large indexes like the S&P 500. With those indexes rebounding back to record highs, there is building pressure to outperform the market and "play catch-up," per Newton. "They all want to earn bonuses at the end of the year," Newton said. "They want to make sure they're keeping track with the S&P." At the end of the day, the key for investors is always how any headwind will impact the economy and the outlook for corporate profits, Newton said. While those estimates fell alongside stock prices earlier this year, the growth outlook for both metrics has increased alongside the recent rally in stocks. "Equity markets have been resilient since bottoming in April, and the rally has been more fundamentally-driven than many appreciate," Morgan Stanley chief investment officer Mike Wilson, who holds a 6,500 year-end target for the S&P 500 in 2025, wrote in a note to clients on Sunday. "While there could be some consolidation during [the third quarter], we remain bullish on a 6-12 month horizon as [earnings per share] tailwinds expand, and the market has line of sight to Fed cuts." Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer. 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
30-06-2025
- Business
- Yahoo
A chaotic six months for stocks shows investors are still leaning 'bullish' headed into the second half of 2025
The S&P 500 (^GSPC) rode a bumpy path to end the first half of 2025 at a record high. After falling more than 19% in April from its previous all-time high, the benchmark index ripped to new records just two months later as the market's worst fears about the impact of President Trump's tariffs evaporated. Still, it hasn't been a clean run higher for the benchmark index. Fears over AI competition from China, tariffs' impact on the growth outlook for American corporates, and increasing tensions in the Middle East have all tested the market's chug to new records. Overall, stocks have largely shrugged off such concerns, with investors continuing to buy the dips and bid them higher. "The market still does tend to have a bullish sentiment to it," Charles Schwab head of trading and derivatives strategist Joe Mazzola said in an interview. "So I think you're seeing investors looking for those opportunities on pullbacks to buy in." There was perhaps no better evidence of market resilience than Trump's "Liberation Day" tariff announcement on April 2. The S&P 500 fell more than 10% in three days, with the rout ranking just below the top 10 worst sell-offs since World War II. But in roughly a month, the benchmark index was back above levels seen before the announcement as markets cheered Trump's various tariff delays. A large part of inflows back into stocks came from retail investors, including a record $3 billion in net purchases on April 3, per VandaTrack Research's data that dates back to 2014. "[There's a] certain feeling of invincibility that's crept into the mindset of a lot of traders, a lot of active investors," Interactive Brokers chief strategist Steve Sosnick said in an interview on June 16. "And it's understandable, because why wouldn't you, right? I mean every dip ... can be considered a buying opportunity." And now with the market back at record highs, many on Wall Street have argued for stocks to keep moving higher by the end of the year. Fundstrat global head of technical strategy Mark Newton pointed out to Yahoo Finance that many money managers are benchmarked to large indexes like the S&P 500. With those indexes rebounding back to record highs, there is building pressure to outperform the market and "play catch-up," per Newton. "They all want to earn bonuses at the end of the year," Newton said. "They want to make sure they're keeping track with the S&P." At the end of the day, the key for investors is always how any headwind will impact the economy and the outlook for corporate profits, Newton said. While those estimates fell alongside stock prices earlier this year, the growth outlook for both metrics has increased alongside the recent rally in stocks. "Equity markets have been resilient since bottoming in April, and the rally has been more fundamentally-driven than many appreciate," Morgan Stanley chief investment officer Mike Wilson, who holds a 6,500 year-end target for the S&P 500 in 2025, wrote in a note to clients on Sunday. "While there could be some consolidation during [the third quarter], we remain bullish on a 6-12 month horizon as [earnings per share] tailwinds expand, and the market has line of sight to Fed cuts." Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer. 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
29-05-2025
- Business
- Yahoo
Buying the stock market dip hasn't paid off this much in 30 years
Investors have been instantly rewarded for buying the dip in 2025 with the highest return in more than 30 years. Research from Bespoke Investment Group shows that so far this year, the S&P 500 (^GSPC) has risen an average of 0.36% in the next trading session following a down day for the index. According to Bespoke's data, which dates back to 1993, the only other time stocks rebounded even close to this aggressively was the 0.32% average rise seen after down days during 2020. As Bespoke wrote on X, the data is proof that the "buy the dip" mentality has been at the forefront of the market narrative in 2025. This played out as recently as Tuesday when the S&P 500 rose more than 2% after falling 0.7% to end last week's trading before the holiday weekend. The catalyst for Tuesday's rally was President Trump dialing back tariffs he had previously threatened, a key driver of many rebound days this year. "We saw our customers buying heavily during April," Interactive Brokers chief strategist Steve Sosnick told Yahoo Finance. "They were astute. They didn't give up faith. Buy the dip has worked for them very well for the past few years, and it did work really well for them again." Read more: The latest news and updates on Trump's tariffs Since the market's most recent bottom on April 8, the S&P 500 has risen nearly 19%. Largely, retail investors have been leading the charge. Data from JPMorgan quantitative strategist Emma Wu showed retail investors have poured more than $50 billion into US equities since the April 8 low. This surpassed the $46 billion retail investors put into the market between March and June 2020. "The buy-the-dip strategy in early April has clearly paid off," Wu wrote. Similar data from VandaTrack showed the week following Trump's April 2 "Liberation Day" tariff announcement saw "record dip-buying flows from retail investors," including $3 billion in net purchases on April 3, the largest daily total since VandaTrack began collecting this data in 2014. Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer. 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
29-05-2025
- Business
- Yahoo
Buying the stock market dip hasn't paid off this much in 30 years
Investors have been instantly rewarded for buying the dip in 2025 with the highest return in more than 30 years. Research from Bespoke Investment Group shows that so far this year, the S&P 500 (^GSPC) has risen an average of 0.36% in the next trading session following a down day for the index. According to Bespoke's data, which dates back to 1993, the only other time stocks rebounded even close to this aggressively was the 0.32% average rise seen after down days during 2020. As Bespoke wrote on X, the data is proof that the "buy the dip" mentality has been at the forefront of the market narrative in 2025. This played out as recently as Tuesday when the S&P 500 rose more than 2% after falling 0.7% to end last week's trading before the holiday weekend. The catalyst for Tuesday's rally was President Trump dialing back tariffs he had previously threatened, a key driver of many rebound days this year. "We saw our customers buying heavily during April," Interactive Brokers chief strategist Steve Sosnick told Yahoo Finance. "They were astute. They didn't give up faith. Buy the dip has worked for them very well for the past few years, and it did work really well for them again." Read more: The latest news and updates on Trump's tariffs Since the market's most recent bottom on April 8, the S&P 500 has risen nearly 19%. Largely, retail investors have been leading the charge. Data from JPMorgan quantitative strategist Emma Wu showed retail investors have poured more than $50 billion into US equities since the April 8 low. This surpassed the $46 billion retail investors put into the market between March and June 2020. "The buy-the-dip strategy in early April has clearly paid off," Wu wrote. Similar data from VandaTrack showed the week following Trump's April 2 "Liberation Day" tariff announcement saw "record dip-buying flows from retail investors," including $3 billion in net purchases on April 3, the largest daily total since VandaTrack began collecting this data in 2014. Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
