Retail investors are aggressively chasing the stock market rally in AI, EVs

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Retail investors are chasing the rally in the stock market. Here's exactly what they're buying.

Retail investors are finally starting to buy into the stock market rally that began nine months ago and helped power theAccording to a Thursday note from Vanda Research, retail investors are piling into both individual stocks and equity ETFs, suggesting that they are not only bullish on specific themes but are also getting more bullish on the broader stock market.

"The monthly net inflows into US equities are now averaging $1.4 billion per day, close to the all-time record of last March ," Vanda Research said."While it may be difficult to see a further increase in the pace of cash equity purchases from these levels, there is still room for more speculative buying in the options space."

Within the individual themes of the stock market, Vanda Research observed that a rotation appears to be picking up as retail investors shift their buying power away from artificial intelligence stocks and towards electric vehicle stocks, with the change likely being sparked by "Retail investors often rotate between themes as they get excited by short-term trends, and the recent beat in Tesla deliveries could be the catalyst to drive an increase in exposure to other EV names," Vanda Research said.

 

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