Churning financial markets, as the failure of three U.S. banks and uncertainty over one big European one continues to play out, did not stop some investors from buying that so-called dip in the stock market at one point last week.
That’s according to a weekly report released Friday from Vanda Research, which said retail investors picked up $1.43 billion in underperforming financial and energy stocks, as well as some big-cap consumer tech names on Wednesday, following two weeks of sluggish action.
Amid concerns over the health of smaller lenders, they bought “unprecedented amounts” of too-big-to-fail banks, amounting to to nearly $1 billion of retail inflows to financials over the past five days. Vanda’s chart shows the last five day’s net purchases with financials standing out:
Marco Iachini, senior vice president, Giancomo Pierantoni, head of data and Lucas Mantle, data science analyst at Vanda, said Charles Schwab
SCHW,
-2.54%
saw the second-most inflows following Bank of America over the past week.
“Some adventurers” were buying First Republic Bank ,
FRC,
-32.80%
PacWest Bancorp
PACW,
-18.95%
and Truist Financials
TFC,
-7.23%,
which they described as “riskier bets that could potentially offer massive upside” if systemic risk can be held at bay.
Stocks climbed Thursday after federal authorities organized major banks to infuse $30 billion into First Republic Bank
FRC,
-32.80%
and stave off a fourth banking collapse, following the failures of Silicon Valley Bank, Signature Bank and Silvergate Bank over the past week . Credit Suisse shares
CSGN,
-8.01%,
meanwhile tumbled 25% last week, shaking global markets at times amid worries for the Swiss banking giant’s own survival.
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