As the stock market rebounded, retail investors returned to the market. Now, there is growing evidence that the influx of retail investors has become an important reason for the strong rebound of the epidemic-hit stocks.

-Editor's button

Data display最The companies that have recently skyrocketed are the most popular companies for retail investors on all major trading platforms. Behind every soaring stock, there seems to be a group of fanatical retail investors.

Here are the most popular stocks in the Russell 3000 index last month by Robinhood users (mostly individual investors):

Behind this frenzied list, we found several interesting phenomena:

1. Beat Buffett, retail investors copied the bottom of the aviation stock "a great success"

The Nasdaq hit a new high and the S & P 500 recovered its losses for the year, rebounding by more than 40%. In the picture above, the average return of the 10 stocks that were highly speculated was as high as a month from May 8 to June 8.93%。

While many on Wall Street are cautious about the rebound, retail investors continue to buy.This time, retail investors seem to have been "hugely successful", whether it is the stimulation of the US zero-commission era, the temptation of bottom-hunting, or the leisure time brought by the epidemic isolation and the idle funds provided by government relief.

Regardless of whether the long-term logic is correct or not, retail investors follow Buffett in reverse and buy a lot of money.American Airlines (AAL.US) $、$Delta Airlines (DAL.US) $、$Spirit Airlines (SAVE.US) $、United Continental Airlines (UAL.US) $Waiting for the company.

You know, Berkshire, the stock god Warren Buffett, said at the shareholders' meeting in early May that it had completely cleared its airline stock.

The aviation industry is now a challenging and difficult industry, and it is not a happy job to do CEO in the aviation industry, especially when the aviation business stops. The future is blurred, especially in the tourism, aviation, cruise and hotel industries. It is riskier to buy airline shares now.

-Buffett

Unexpectedly, after Berkshire cut the meat and cleared the stock, the aviation stock sector ushered in a rebound.

This time Buffett did not earn the money, retail friends made.

2. Trading volume has skyrocketed and speculative sentiment is high.

The company in the picture above, not only has its share price rebounded strongly, but its trading volume has also soared, and the average daily trading volume has even reached 2019.30倍。

Take American Airlines as an example, an average of 101 million shares changed hands every day in the past month, which was the normal level last year.23倍。

The airline has 423 million outstanding shares, of which 417 million are outstanding. In other wordsThis means that outstanding shares of American airlines change hands every four days.

Moreover, some tradable shares may be held by institutions for a relatively long time, so the actual outstanding shares may change hands more frequently.

Under the feast, there were a large number of participants, and the mood of speculation naturally increased.

Some people have made a profit in time, while others have just taken over and feel that the best is yet to come.

3. Retail investors are everywhere, and bankrupt companies are also robbed.

Another puzzling thing about the list is that retail investors are everywhere, even for companies that have declared bankruptcy.

John Ham, an assistant consultant to New England Investment and Retirement Group, saidSome stocks are purely momentum trading, which has a huge impact on the overall trading. It is more common in airlines, cruise ships and low-cost stocks.

A century-old car rental giant$Hertz (HTZ.US) $This is an example.

Affected by the epidemic, Hertz filed for bankruptcy on May 22. After filing for bankruptcy, the share price plummeted 80% in a single day, as low as $0.4, but its latest price soared to $4.18, up nearly10倍。

The same story, filed for bankruptcy in April.$Whiting Petroleum Corp. (WLL.US) $Those who filed for bankruptcy in May$Penny Department Store (JCP.US) $It's on, too.

4. Fear was left behind by the market, but many hedge funds stood still

It is worth mentioning that short selling / buying of CBOE stock options fell to its lowest level in more than a decade than its five-day moving average, according to Bloomberg data.0.43By comparison, it reached as high as march 171.05。

In other words, the current market risk appetite is further rising, investors are continuing to buy, and fear has been left behind.

However,"headlines of foreign media on June 5"It is mentioned that hedge funds are preparing for another collapse in the stock market, and many people are increasingly worried that soaring prices do not reflect future economic problems.

• Danny Yong, founding partner of hedge fund Dymon Asia Capital in Singapore, said:

The price in the market is perfect. The stability of the stock market does not reflect the unemployment and bankruptcy problems we face around the world.

• Morgan Stanley (Morgan Stanley) said in a recent report that his hedge fund clients held net short positions in euro Stoxx 50 futures of about $40 billion.

  JPMorgan Chase & Co Jiacheng (JPMorgan Cazenove) saidGlobal macro hedge funds have sharply reduced their exposure to equities this year.

• Francesco Filia, head of London-based hedge fund Fasanara Capital, said the fund had a cash position of 70 per cent and used put options and other instruments to hedge its portfolio while waiting for a "serious rupture" in the market.

It is indeed interesting for retail investors to "gamble" with institutions, the former conforming to the trend and the latter watching carefully.

Many investors dare to lick the blood out of a fluke, thinking that asset restructuring after filing for bankruptcy is expected to regain momentum, but they do not realize that the more common situation is empty-handed.

Investors flocking to the epidemic-hit sectors such as airlines and cruise ships are more like buying lottery tickets. They are indeed more flexible in the short term and have the opportunity to earn more profits, but there are actually greater risks behind them.

Wall Street bosses are also constantly reviewing their perceptions and strategies. Recently, Stanley Druckenmiller, a former military adviser to SorosAdmit that he missed the rebound because he underestimated the Fed.

Druckenmiller representsThere are still concerns about high corporate debt.Among his current stock positions, technology giants Amazon.Com Inc and Microsoft Corp still account for the largest proportion.Expectations of a reopening of the economy will boost value stocks.