Small investors see buying opportunities in the stock market downturn

The turmoil in the stock markets is not causing private investors to flee equities, according to a study by Belgian brokers. On the contrary: ‘Small investors are taking advantage of stock market discomfort to pick up penalties.’

“Despite the cooling of stock markets, high inflation and the conflict in Ukraine, we continue to see a steady influx of new investors,” said Bolero, KBC’s online investment platform. Bolero has already welcomed 10 percent of new customers since the beginning of the year.

The essence

  • Investment remains structurally more popular than before the corona pandemic, Belgian brokers conclude.
  • Young investors are also continuing to flock despite declining stock markets in recent months.
  • Private investors mainly pick up severely punished stocks again.

‘We also do not see any major sales movements among our customers: In the first quarter, the buy-sell ratio of transactions was 65/35. In the second quarter of 2022, that ratio will even be 69 percent in purchasing and 31 percent in sales. Other brokers report a similar trend. ‘In the first quarter, the buy-sell ratio for us was 59/41. In the second quarter, it rose to 61/39, “Saxo said.

69%

purchase

In the second quarter of 2022, the buy-to-sell ratio at Bolero will be 69 percent buy versus 31 percent sales.

Traditionally, revenue in the second quarter is slightly lower than in the first months of the year. “But we see that the desire to invest remains structurally higher than before the outbreak of the corona pandemic,” say the Belgian brokers in chorus.

Bruises are taken up

It is noteworthy that private investors are picking up the severely punished stocks in large numbers. At Saxo Bank, both Colruyt and Sofina are among the most bought shares. Colruyt has lost 30 percent of its stock market value since the beginning of this year, the Boël family’s holding even more than 50 percent.



Our customers continue to fully believe in Sofina and Colruyt.

Keytrade Bank

Online investment platform.

The most popular stock bought at Keytrade is the telecom operator Telenet, which has lost about 35 percent since the beginning of this year. “We do not see any sectoral shift, but we do notice that investors take profits or losses and then go into companies whose prices have fallen sharply,” Saxo Bank said.

Same tenor with other brokers: ‘In the European market, we see that fallen angels like Philips and the scandal-ridden Orpea are often bought’, according to Keytrade. And our customers continue to fully believe in Sofina and Colruyt. Classics like GBL and Ackermans & van Haaren are also in demand. ‘

In addition, Wall Street continues to exert a huge attraction on private investors in our country: tech giants like Apple, Microsoft and Meta still seem to be very popular. The dive Netflix (-70% since the beginning of this year) was also purchased in bulk, the survey shows. However, several brokers see that investors are looking a little closer at home this year: In the first half of the year, there was a slightly greater preference for Euronext shares than for US shares. It was different in 2021.

Young people stay

Since the outbreak of the corona pandemic, young investors have found their way into the stock market galore. This trend continues, even now that many of these young investors are experiencing their first stock market depression. ‘One third of our new customers are still under 30 years old. The realization among young people that it is best to invest in the stock market for a certain return is permanent ‘, says online broker Bolero. The persistently high inflation and low interest rates on savings accounts are probably no stranger to this.



One third of our new customers are under 30 years old. The realization among young people that it is best to invest in the stock market for a certain return is permanent.

Bolero (KBC)

Online investment platform.

ETFs or trackers continue to gain popularity among the group of new investors. “ETFs are increasingly among the most traded securities. This was never the case before a few years ago,” says Bolero. Bank.

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