“How do you deal with price drops in the market?” It was the question asked of 890 investors in our monthly IEX poll. With prices fluctuating, investors have the difficult task of protecting and growing their portfolio, regardless of market conditions.
How do investors do that? Which sectors are they most cautious in and which are the five most frequently shorted stocks this month? We will check it for you.
Most people choose to buy (additional) shares.
The majority of investors (74.2%) see the current state of the stock market as an opportunity to expand their stock portfolio. These hopefuls choose to buy additional shares. A smaller, but less strategic group (4.4%) chooses to buy options to take advantage of future price declines.
While some are sticking to traditional assets such as gold and silver, the rest are exploring the possibilities of Inverse ETFs that benefit from market downturns. It seems that there is still a need to find this instrument with a larger group of investors.
Possible on Inverse ETFs
ETFs are exchange-traded funds that are designed to replicate the daily return of an index—adjusted or unadjusted. In other words, when the index loses value, the fund gains value – and conversely, when the index rises, the fund loses.
With such a result you naturally want to be in a sector that has little growth potential in the short term. That’s why we asked investors which sectors they are wary of. The answers are different.
What category do you care about the most?
- Technology: 18.8%
- Finance: 14.5%
- Energy (oil & gas): 9%
- Chemicals/Pharmacy: 15.9%
- Defense / Cyber : 2.2%
- Telecommunications: 12.5%
- Consumer goods: 16.1%
- Raw materials: 9.3%
- Other: 1.7%
Which stocks are the shortest in May?
Finally, investors say which stocks to short in May. A clear top 5 emerges from all the responses. It is number five Randstad. Investors are expecting a slowdown in economic growth. They also see that more and more companies are focusing on permanent workers, which is further reducing confidence in the temporary employment sector.
It is number four Philips, despite the recent huge price jump. Investors still don’t seem convinced: “The settlement does not mean that all concerns are over. Structurally it is not correct, there is a lot of uncertainty due to non-transparent regulation and who knows, more claims may follow later.”
Third place goes to food delivery people Just Eat Takeaway. Investors have little confidence in the business model. The competition is also reason enough for investors to short the dividend this month. In addition, JET has no investors to manage and sees poor growth opportunities.
Iron he gets the silver medal. Investors believe that the sector has risen too fast, is overvalued and therefore too expensive. Investors will also have doubts about Besi’s order inflow in the coming quarter, which was disappointing in the last quarter.
And then the long number 1: Alan. Investors believe that Adyen is the most valuable share in Damrak. “The price movement is unbelievable based on the figures. Feeling is already turning a bit, which is also due to increased peripheral pressure. This share is very expensive and it has no choice but to fall in the next month.”
2024-05-10 07:03:32
#fellow #investors #confidence #stocks #IEX.nl
