What Did Institutions Buy and Sell in August 2024?

Post date: 2024-09-07 10:08:31 GMT

From Media to Munchies: How Election Campaigns Fuel Institutional Stock Picks

In August 2024, institutional investors focused on reducing risk associated with the U.S. markets, signaling concerns about a recession. AbleMarkets analysis shows that institutions invested in overseas markets such as Qatar and emerging markets, as well as in stable fast-food chains like Nathan's Famous (NATH). Media companies like the Salem Media Group (SALM) were also considered appealing, especially with the upcoming election campaign spending. Institutions showed a preference for high-priced stocks and tended to sell off smaller ones. Retail investors typically followed suit by purchasing the stocks that institutions were offloading.

The results in Table 1 display a cross-sectional panel linear regression analysis where the AbleMarkets Daily Institutional Activity Index for each Russell 3000 stock serves as the dependent variable. The explanatory variables used in the analysis are the beta, average price, and volatility of each stock for August 2024. The findings presented in Table 1 indicate a significantly high negative beta coefficient, which was statistically significant. Moreover, the regression model's Adjusted R-squared value of 14.3% stands out as quite substantial for a linear financial model.

Subscribe now to stay on top of the latest trends.