By looking at what traders have been buying and selling, we can get a more detailed picture of the market. Not only does this help us to see where we are right now, but it also gives us some insight into where things might be heading.
Let’s take a look at what’s been piquing the interest of Fineco traders and grab some hot-off-the-press trading information.
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What have traders been buying?
This year is already turning out to be an eventful one for investors! It seems like there are changes and announcements on a daily basis that are really shaking up the markets.
Here are three trends that are seeing a lot of activity from traders:
1. Cannabis stocks
Everyone is always on the look-out for the next big thing. Cannabis is becoming a more legitimate industry and has a lot of potential to grow (excuse the pun).
In the US, federal legalisation hopes went up massively with Biden’s election win and more states voting to legalise. There’s been a bit of a scramble recently and traders have been buying up lots of cannabis-related stocks.
All this attention has driven up the price of what were penny stocks. This could no doubt become a booming legal industry within a few years. But it’s a difficult task picking out the companies that will succeed. Some traders just want some exposure. Others are investing heavily in and out of businesses like Aphria, the most-traded company on Fineco so far this month.
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2. Banking and insurance stocks
These industries have had a tough time over the last year. It’s not been business as usual due to the coronavirus pandemic. However, banks and insurance companies are adapting.
With the outlook for this year being brighter, traders have been rushing to pick up shares in companies like:
- Standard Life
- HSBC
- Aviva
There has been a high demand for these companies and a lot of buying action. Perhaps traders think a good upside is on the horizon for these more stable businesses as things return to normal.
3. Airbnb shares
Over in the US, Airbnb has attracted a lot of buying activity from traders.
It’s been a ropey time for most companies involved in hospitality and holidays, even for darlings like Airbnb. However, recent announcements from the company around their financials and recovery plans have got investors excited.
The company is showing that even when things are rough, they can still be agile and make money. This is only reinforcing the view that once things are closer to normal, the company is going to be coming back with a bang.
Who are the traders that have been buying and selling?
Almost as interesting as ‘what’ people are trading, is who is doing this buying and selling. There’s been a massive uptick in new investors and Fineco saw its overall client base grow by a third in the last quarter. It’s massive growth, and it’s similar to reports from other share dealing platforms.
Amongst these traders, millennial males have been the most active. It also looks like the younger Generation Z are dipping their toes into investing with 119% growth in this area. It’s great to see more young people investing because the more time you have, the better compound interest can work in your favour and really grow your wealth.
It will be interesting to see which companies continue to rebound and find out if what traders have been buying keeps attracting more interest.
