According to AJ Kahling of brokerage TD Ameritrade, retail investors have continued to buy deep despite recent market volatility, even preferring technology despite the sector’s decline.
“Our index, TD Ameritrade [Investor Movement Index]Just this morning came out indicating that retailers are continuing to buy deep, “Kahling, the firm’s head of international education, told CNBC’s” Squawk Box Asia “on Wednesday. Indicators for the first time. “
“One of the interesting things we’ve seen is … technology is going to be a strong buy,” he said.
The world’s largest tech companies have recently lost more than $ 1 trillion in three trading sessions.
As of Wednesday’s close, the technology-heavy Nasdaq composite on Wall Street has fallen more than 27% so far this year.
Even Asia has seen big losses, with Hong Kong’s Hang Seng Tech index down more than 29%. On the mainland, the Star 50 Index – a collection of the 50 largest stocks in the technology-heavy Star Market – fell more than 28% over the same period.
According to Kahling, investors seem to interpret technology as an opportunity to buy pullbacks.
“It looks like these stocks রয়েছে there’s an opportunity to buy them they haven’t had in two years. If you miss the pullback from the coveted era when we had 23 days নের fall there, this could be your chance,” he said.
Kahling said most of the shopping took place in late April rather than early.
“What we think is happening is that people are waiting, you know, to jump in and reach a support level, a technical support level, before buying that dip,” he added.
The names that TD Ameritrade customers bought include heavyweight chip maker Taiwan Semiconductor Manufacturing Company and American software firm Adobe.
“I think what customers were saying was, ‘Listen, these stocks are almost sold out,'” Kahling said.
“It was specific to Singapore TD Ameritrade customers, but the overall client base in the US and including Singapore also bought technology-heavy – Twitter, NVIDIA, AMD,” he said. “It’s still a matter of buying a lot of technology between TD Ameritrade Singapore and the general public.”