AI summary
Summary of article:
The sharp decline in US stocks caused divisions among retail investors between bargain-hunting and hedging, but overall there was a rare oversold, indicating that the market is reassessing the risks of AI trading and subsequent downside.
US stocks It was an ominous green colour. Some people were worried that the decline was not over yet and did not dare to take it, but others were excited to take advantage of it.
U.S. stocks fell sharply on Thursday, with retail investors selling off individual stocks, MarketWatch reported. According to Wanda Research, net sales that day were $257 million, the third-highest recorded since March 2020.
Viraj Patel, global market strategist at Wanda, pointed out that when the stock market usually falls, retail investors buy on dips, but this time, buy orders for individual stocks have almost disappeared. As institutional buyers are exiting the market, retail investors and systematic funds working based on the model are again actively selling. This type of capital outflow usually occurs only when the market is under severe stress.
But Matt Cerminaro, the 27-year-old founder of financial advisory content platform Exhibit A, still chose to enter the market and bought a large amount of the QQQ ETF that day tracking the Nasdaq 100 index.
He said that when the stock dropped, he felt an “urgent desire to buy at lower prices.” “Although it was painful, I also felt excitement.” He suspects that many younger investors, particularly Millennials and Generation Z, are likely doing the same thing. “Many of us remember what it was like to buy a stock in mid-March 2020 and wake up three weeks later to find that our account was up 25%.”
Blake Werner, a 21-year-old University of Arkansas student, was in no rush to get in. They believe that the newly elected officials areaye His comments led to a decline in the respective stocks. I’m afraid the selloff is not over yet, and I plan to find a buy point to enter the market early next week.
Christopher Matlack, a 36-year-old software quality assurance engineer, reduced his code a few months ago and is currently living on the sidelines.
Wesley Ruede, a store manager and retail investor living in New York state, doesn’t believe “AI trading is dead.” He said the market is just beginning to reevaluate the true cost of the AI transformation, the extent to which money is recycled into some infrastructure investments, and how much political resistance there may be to building physical facilities. He is neither buying nor selling at this time.
The subreddit r/WallStreetBets showed a clear divide in retail investor sentiment. Some speculated that Thursday would be a good time to buy call options, betting on a sharp rise in the market, while others pessimistically said: “The bubble hasn’t even burst yet, it’s just whetting appetites.”
Summary FAQ
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According to Wanda Research, retail investors collectively sold individual stocks on Thursday with a net sales amount of US$257 million, the third-highest record since March 2020, indicating a significant increase in market pressure.
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For example, 27-year-old Matt Cerminaro took advantage of the decline to buy the QQQ ETF, believing that when a sharp decline occurs, there is a desire to buy the bottom immediately; They also remember the rapid rebound experienced after entering the market in March 2020, so they are willing to endure short-term fluctuations.
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Some believe that AI transactions have not yet ended, while others are worried that the related stock bubble is beginning to burst, and the market is reevaluating the cost of political resistance to AI transformation, capital circulation and physical infrastructure construction, so they choose to wait and see.
