Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

U.S. retail stock buying hit record level on Friday -Vanda Research

EconomyJun 23, 2021 03:11PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: The New York Stock Exchange is pictured in the Manhattan borough of New York City, New York, U.S., April 16, 2021. REUTERS/Carlo Allegri/File Photo

By John McCrank

NEW YORK (Reuters) - Retail investors bought more stocks on Friday than at any other time on record, taking advantage of a sharp drop in share prices, analysts at Vanda (NASDAQ:VNDA) Research said on Wednesday.

Net inflows from individual investors into equities were $2.05 billion on Friday, Vanda analyst Giacomo Pierantoni and senior strategist Ben Onatibia said in a note to clients.

The move was spurred by the recent recovery of stocks favored by retail traders and a rotation out of cryptocurrencies that led millennials to reengage with equity markets, they said.

The S&P 500 fell 1.31% on Friday and the Nasdaq Composite dropped 0.92%, after a U.S. Federal Reserve official suggested the U.S. central bank might raise interest rates sooner than previously expected.

While retail investors bought the dip, especially exchange-traded funds like the SPDR S&P 500 Trust (SI:SPY) and Invesco QQQ, as well as financials, materials and energy stocks, institutional investors were sellers, the Vanda analysts said.

"Hedge funds unloaded their massive positions in value stocks after the FOMC and nobody else but retail wanted in," they said, referring to the Federal Open Market Committee.

Individual investors ramped up their stock market activity starting in November 2019, when most large brokerages dropped their trading commissions. Retail activity accelerated during the COVID-19 pandemic, peaking in the first quarter of 2021.

Retail engagement is likely to remain well above pre-pandemic levels going forward, based on the results of a survey of around 500 individual investors, Jefferies (NYSE:JEF) said on Wednesday.

"Ease of access, improved technology, product innovation (i.e. fractional shares) and low costs are some of the factors that give us confidence around this sustainability," Jefferies analysts said in a client note.

Around 70% of those surveyed by Jefferies said that in a normalized economy they would either not alter or would increase their trading activity.

U.S. retail stock buying hit record level on Friday -Vanda Research

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email