Is the really small investor craze really starting now?

Goldman Sachs chief equity strategyist David Kostin recently From $ 350 billion to $ 400 billion raised a 2021 estimate of net equity purchases by households in a new analysis for customers.

In the first quarter alone, households were the largest source of stock demand with $ 172 billion in net purchases,

it turns out from the writing.

One of the clearest signs of the overwhelming zeal of retail investors (perhaps too much) is that Kostin estimates households currently invest 44 percent of their assets in equities.

This is barely below the peak of 46 percent at the peak of dotcom madness.

Kostin explains the high cash stock and the constant presence of the population in the stock markets it is expected to strengthen household stock demand. For households, the choice between equities and other asset classes could benefit equities by the end of the year, as interest rates are markedly low for the time being. In addition there are also signs of a sustained rise in inflation in favor of equities over bonds or cash, thought the guru.

If Kostin is really right, then the stars could have really come together for the new small investor craze, so it is possible that we will see more serious exchange rate rises this year than the amazing rallies so far.

During the first short squeeze driven by small investors at the end of February, the share of the video game retailer GameStop was able to rally a huge one, only

In 4 days, the exchange rate soared by 670 percent,

while during the recent second short squeeze, which is still going on somewhat, AMC Entertainment, the former second-fiddle cinema operator, became the star, We could see a 220 percent rally in 4 days at the stock in early June.

In our latest podcast conversation, Márton Orosz, Content Development Director of the Portfolio Group, talked about the news of the meme stock frenzy with Kristóf Mohos, Portfolio’s stock analyst, the podcast can be listened to below:

Cover image: Getty Images


Source: Portfolio.hu – Befektetés by www.portfolio.hu.

*The article has been translated based on the content of Portfolio.hu – Befektetés by www.portfolio.hu. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!