Over the last three months, the favorite stock to “mom-and-pop” retailers have run even more difficult than the general market increase of 40%.
But many of these novices, who began to negotiate part of the entertainment and the party, even if the fall in the price of the stocks more attractive, now appears to be changing its strategy and collection of the frothiest areas, or moving into more security-semblance of paris.
Clients at Saxo Markets Singapore have been reducing long positions in the pace of gathering this month. Asian investors with TD Ameritrade the sale of the surge in high-tech firms to the banks, while other brokers compared to the demand for blue chips.
The movements of the toggle, the image of the retail investors as “night butterflies”, as they are called in Thailand for their reputation to be drawn to the light only to burn yourself, since small traders seem to have led rather than lagged that of professionals this time.
“A few of the benefits on the Wall Street may be pulling hair, saying that this basically has no meaning,” said Chris Brankin, chief executive officer of TD Ameritrade in Singapore.
“But I don’t think I have something to compare with…so that the retail investors so you can spend more with the money flow and the market sentiment.”
A basket of stocks popular with retail investors, including Tesla (TSLA.O), Moderna (The MRNAS.O) and Snap Inc (SNAP.N), increased to 61% of Wall Street March low, compared to an increase of 45% in a portfolio that is favored by professionals, according to Goldman Sachs.
FORGET THE NUMBERS
Like other banks, the analysts of Goldman recommended that customers avoid the energy sector, like utilities, financial management, and wait for the technicians of the ” hot run to continue. But Asian broker analysis suggests that retail buyers go their own way.
“Sometimes, I think that the reports of the major brokerage firms are a load of crap,” said Lee sang-hoon, a 37-year-old office worker in South Korea.
He made a return of 44% on its first 140 million won ($115,740) investments for the month of March, the trading of U.S. equities in the Seoul night, and based on Google Trends data for the monitoring of the mood of investors.
“When Google says it is going to be more buyers, I buy it. Forget the numbers, if the feeling is strong, the market goes up.”
Lee has exposure to the volatility of the U.S. shale oil and gas, and does not intend to reduce its investment, but also holds the local blue-chips to balance its portfolio.
TD Ameritrade said that its Asian customers sold Apple (AAPL.O) and Tencent (0700.HK) last month, and bought by Berkshire Hathaway (BRKa.N) and J. P. Morgan (JPM.N). Singapore, PhillipCapital has stated that its customers, even in the 18-25 year-old bracket, have been buying dividend blue chips or cashing out.
Australia’s biggest retail broker, CommSec, has reported the abandonment of the volatility of stocks, such as Treasury Wine Estates (TWE.AX) and in the big banks and miners.
To be sure, retailers are still placing incredibly risky bets, such as the bankruptcy of car rental company Hertz (aHTZ.N).
“I can’t imagine that someone who went to a trade school or an asset manager would buy shares in a bankrupt company,” said Rob Almeida, global investment strategist, and portfolio manager of mutual funds at MFS in Boston.
“Historically, the retail investor is last to the party and they don’t know that the cops are on their way,” he said.
But the fear of letting go of a once in a lifetime chance is strong.
“Retail investors missed out on the long-term, large gathering since the global financial crisis of 2008,” said Taye Shim, president director of Indonesia Mirae Asset Sekuritas.
“I think they are more encouraged to not let this one pass,” he said.
Reporting by Cynthia Kim in Seoul, Orathai Sriring in Bangkok, Fransiska Nangoy in Jakarta, Karen Lema in Manila, Noel Randewich in New York, Sujata Rao in London and Tom Westbrook in Singapore.; Written by Tom Westbrook; Editing by Vidya Ranganathan & Kim Coghill
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