Possible review: V-month for stocks and massive insider purchases
May sale?
They certainly did, but instead of disappearing as the old stock market adage suggests, traders actively bought when falling, leading to some of the craziest monthly swings in recent years.
There was a sell-off in a large number of asset classes in the first half of this month due to doubts about economic data, mixed corporate profits, aggressive central banks, inflation, and China's lockdown policies.
US equities $S&P 500 Index (.SPX.US)$ It briefly fell into a bear market, down 20% from recent highs, but then the market began to lower expectations for US interest rate hikes. Weekly Review: Market Tendency to Start Stronger?!
1. Stock V-month
Quoted from Reuters: At the bottom of May 9, the Morgan Stanley Capital International (MSCI) global stock market benchmark lost nearly 5 trillion US dollars from that month's peak, the lowest level in about 18 months.
Quoted from Reuters: At the bottom of May 9, the Morgan Stanley Capital International (MSCI) global stock market benchmark lost nearly 5 trillion US dollars from that month's peak, the lowest level in about 18 months.
Since then, the index has risen 8% as the market lifted the Federal Reserve's most aggressive austerity bets. As a result, the Morgan Stanley Capital International World Index will rise slightly at the end of May, and the market value will return north of $60 trillion.
Meanwhile, the stock sector most vulnerable to interest rate fluctuations — US tech stocks — plummeted 15% in the first 20 days of this month, then rebounded 12%.
Nasdaq Composite Index $Nasdaq Composite Index (.IXIC.US)$ By the end of May, it was down 2.1%. This is narrower than the fall in April, when the index fell 13%, but remained unchanged in the bear market, falling 23% this year.
2. Record buybacks and internal acquisitions
In May, S&P 500 buybacks were the strongest since March 2020, according to VerityData. Also, in May, for the broader small-cap index Russell 2000, stock buybacks surpassed sales for the first time since March 2020.
In May, S&P 500 buybacks were the strongest since March 2020, according to VerityData. Also, in May, for the broader small-cap index Russell 2000, stock buybacks surpassed sales for the first time since March 2020.
Executives bought company shares at the fastest rate since the COVID-19 pandemic in 2020. Some Wall Street analysts say this is an encouraging sign for the US stock market.
Analysts at J.P. Morgan Chase said on May 27 that at a time when retail investors are leaving the stock market and the US economy is slowing down or the threat of recession looms, the views of business insiders on most industries are contrary to market consensus and are going crazy. “Buy the bottom” and keep falling our own stocks.
Analysts at the bank said that “record” corporate buybacks indicate that the US stock market is about to hit bottom and rebound.
Details of stock purchases by the top 10 insiders by cost are as follows: $Seven Hills (SEVN.US)$ , $Tradeup Acquisition Corp (UPTD.US)$ , $Runway Growth Finance (RWAY.US)$ , $Occidental Petroleum (OXY.US)$ , $Nielsen (NLSN.US)$ , $Siacoin (SC.CC)$ , $ServiceSource International (SREV.US)$ , $Carvana (CVNA.US)$ , $HP Inc (HPQ.US)$ , $Korab Resources Ltd (KOR.AU)$ .
Data source: gurufocus.com
Among them, Occidental Petroleum $ (OXY) $ and Helmerich and Payne Materials$ (HP) $ both added positions $Berkshire B (BRK.B) $, $Berkshire (BRK.A) $.
If needed, you can go to Gurufocus.com for more information on internal purchases.
3. Password crashed
On the crypto market side, hit by the collapse of the US dollar Terra in mid-May, a stable that lost its 1:1 stake in the US dollar triggered a sharp decline in all other crypto assets.
On the crypto market side, hit by the collapse of the US dollar Terra in mid-May, a stable that lost its 1:1 stake in the US dollar triggered a sharp decline in all other crypto assets.
By the time the Terra dollar crashed, the total market capitalization of all cryptocurrencies was as low as $1.14 trillion, according to CoinMarketCap data.
It's now $1.3 trillion, down about 25% this month, and is more than 56% lower than its peak of nearly $3 trillion in November.
Early Wednesday trading saw stock futures rise as Wall Street turned a new page into another month.
What are your goals? What are your expectations for the June market?
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