00:00 Speaker A
It’s been surprising how much retail traders have really bought the dip when it comes to Nvidia. I mean, every single dip this year has been bought.
00:06 Speaker A
Uh, other areas of the AI trade, what are some of the other touch points that retail traders have been looking at?
00:12 Speaker B
Yeah, people are looking for value right now. Uh if you look at Nvidia, it’s up 16 1700% from uh the fourth quarter of 2022. It’s up 1,200% um, you know, over over the last uh, you know, eight uh 18 months or so.
00:23 Speaker B
So people are looking for uh the AI theme in general. They’re looking for other areas and saying, okay, if um, you know, data centers require all this energy, uh, you know, solar is going to play a role in that. So they’re buying solar stocks that have been beaten down for a variety of reasons.
00:37 Speaker B
They’re looking at cyber security. They’re saying, all right, AI infrastructure, cyber security is going to be key. Um, they’re looking at robotics. They’re saying, okay, within AI, maybe there’s a uh physical component of that, which players are going to be involved in that space.
00:49 Speaker B
So, people are still playing the same theme, but they’re looking for areas where there’s value, they haven’t quite run up as much and they can make the case for them playing catchup over the next uh six 12 months.
00:59 Speaker A
And you really see it with the different sectors that have led the markets this year, including uh industrials, including utilities as well. Um, a September rate cut, 25 basis point, is that a shoo-in? For retail traders?
01:10 Speaker B
It’s it seems like it. That’s what the market is pricing in, that’s what retail is betting on. If you look at the areas of the market people are investing heavily in right now, small caps are getting rotation.
01:19 Speaker B
If you look at the riskier part of crypto, altcoins, Ethereum, those are getting bid. And so people are basically making the bet 6, 12 months from now, whether it comes in September or December, that rates will be lower next year.
01:29 Speaker B
And so, uh we did we ran a poll, uh 80% of Stocktwits users expected at least a 25 basis point cut in September. Um, some of them expected more 50 basis points. I don’t think we’ll quite get that, but the point is retail and the broader market is certainly positioning for lower rates.
