Wonder who was buying the euphoria blow-off top stock market breakout yesterday? One clear answer, according to Nicholas Colas of DataTrek Research, is answer is “Mom and Pop”. Nick looked at the publicly available trade data on Fidelity’s retail website and found net buy orders across both single stocks (mostly tech) and ETFs. And, no surprise, some bitcoin names as well.
Here's what else Nick discovered.
Retail investors have lost some of their reputation for being the “Dumb money” over the last few years. After all, anyone “Dumb” enough to own the largest US listed ETF (SPY) or the biggest tech names (AAPL, GOOG, etc) has done very well for over half a decade.
Still, whenever we see a big up day for US stocks, we can’t help but wonder what the retail investor is buying when stocks hit (yet another) all time high. Are they getting cautious and lightening up? And what names do they still like?
Fidelity Investments lets you see their customers’ Top 10 names traded, in real time if you have an account and one day-delayed if you don’t.
Here’s some color on today’s market action, courtesy of that information source:
A few other comments from the Top 25 list, available to customers (and I
assume every quant hedge fund that has a Fidelity account expressly to
hoover up this information):
The upshot: Fidelity’s customer base is representative of the retail investor, and this group is certainly still a net buyer of US equities. Even on a day of all-time-highs. Call them “Dumb money” if you want… But they’ve been right for a long time and they seem perfectly content to “Buy the breakout” as much as “buy the dip."