Is the retail investor getting blinded by these 20 lottery effect stocks?
Visualisation by Mohommad Arshad via AI
Synopsis
While buying stocks that are falling is considered good, investing in stocks with low probability of high gains may not always be an intelligent move. In the past one year, retail investors have been the big buyers of stocks that fell hard. But FIIs became the big sellers and made money.
Two interesting things are happening in the stock market currently. One, retail investors have become big buyers into large companies. Second, they are also the big losers as far as returns are concerned. In the past one year, retail investors have been the big buyers of stocks that fell hard. At the same time, it was the FIIs (financial institutional investors) who became big sellers and made money. During the period, ET Prime Retail Index fell