empty
 
 
22.06.2020 03:42 PM
Do professionals lose their strength?

Goldman Sachs Bank noted that stocks favored by American retail investors have outperformed those favored by professionals from mutual and hedge funds. This happened on fears of missing out further stock growth. It is surprising that retail investors have managed to pick successful stocks without special preparation.

Retail traders prefer to buy shares of the companies that have a difficult financial situation due to the coronavirus pandemic. Professionals, in turn, do not make such a large number of bets because these shares are either unprofitable or low-margin.

The chart below shows how the shares of a small Chinese real estate company Fangdd surged in price by 13 times, but the next day the shares dropped again. This is why professionals do not spend time on small transactions.

This image is no longer relevant

The Bank notes that this year the number of small transactions on stock options is rapidly growing. The reason for that is the increased activity of retail investors. They have a fairly large supply of cash that makes it possible to earn money in the market.

Charles Day, Managing Director of UBS Global Wealth Management, assures wealthy clients that they should not worry about losing huge profits. According to him, it is better to leave this type of trading for amateur speculators.

The expert also reminds about the threat of the second wave of COVID-19 and recommends focusing on "growth stocks" as well as on cheap "stocks of value". In addition, he advises holding some cash and government bonds to protect investment portfolio against volatility.

Kate Smirnova,
Pakar analisis InstaForex
© 2007-2024
Dapatkan keuntungan dari perubahan nilai mata uang kripto dengan InstaForex.
Unduh MetaTrader 4 dan buka perdagangan pertama Anda.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    GABUNG KONTES
  • Chancy Deposit
    Isi akun Anda sebesar $3000 dan dapatkan $8000 lebih banyak!
    Pada Maret kami mengundi $8000 dalam promo Chancy Deposit!
    Dapatkan kesempatan untuk menang dengan melakukan deposit sebesar $3000 pada akun trading Anda. Setelah memenuhi persyaratan ini, Anda telah menjadi partisipan promo.
    GABUNG KONTES
  • Trade Wise, Win Device
    Top up akun anda dengan dana minimal $500, daftar kontes, dan dapatkan peluang untuk memenangkan perangkat seluler.
    GABUNG KONTES
  • 100% Bonus
    Kesempatan langka untuk mendapatkan bonus 100% pada deposit anda
    DAPATKAN BONUS
  • 55% Bonus
    Ajukan bonus 55% pada setiap deposit anda
    DAPATKAN BONUS
  • 30% Bonus
    Raih bonus 30% setiap kali anda top up
    DAPATKAN BONUS

Artikel yang direkomendasikan

Tidak bisa bicara sekarang?
Tanyakan pertanyaan anda lewat chat.
Widget callback