| On Monday, Charles Schwab released its monthly trading activity data, including a list of the most heavily bought and sold stocks in the month of February. The most-bought stocks are the ones you'd expect: Nvidia (Nasdaq: NVDA), Alphabet (Nasdaq: GOOGL), Advanced Micro Devices (Nasdaq: AMD), Super Micro Computer (Nasdaq: SMCI) and Arm Holdings (Nasdaq: ARM). No surprises there. All of them are tech stocks that are involved in the production of semiconductor chips, and all of them have hit or nearly hit their all-time highs since January 26. The most-sold stocks included The Walt Disney Co. (NYSE: DIS), Palantir Technologies (NYSE: PLTR), Marathon Digital Holdings (Nasdaq: MARA), Ford (NYSE: F) and General Motors (NYSE: GM). Interestingly, all but Ford traded at or near 52-week highs in February, and Ford traded at its highest level since early August. The stock is up 33% from its lows in October. So retail investors are buying white-hot stocks that are at all-time highs and selling stocks with lots of potential upside. That's typical retail behavior. Now, that's not to say Nvidia can't go higher. It certainly can, and it seems to every day. But investors are better off buying the stocks that everyone else isn't buying - the ones being ignored. And Wall Street certainly isn't ignoring the most-bought stocks. Analysts overwhelmingly have them rated as "Buys," while only two stocks on the "most-sold" list (Disney and GM) have primarily bullish ratings. Remember, in analyst speak, "Hold" means "sell," and "Sell" means "run away from this dog as fast as you possibly can and don't look back." |
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