"Different Strokes for Different Folks"
The above expression means that everyone has their own way of doing things or different ways of doing things are appropriate for different people.
In the financial markets, a recent study shows that there are wide differences between institutional and retail investors, at least from the perspective of their biggest stock market positions.
The top 10 most widely-held stocks by Institutional Investors are:
V (currently technically rated moderate bullish), ADBE (bullish), MA (moderate bullish), GOOG (bullish), PYPL (bullish), CRM (moderate bullish), MSFT (bullish), BABA (moderate bullish), UNH (bullish), and CHTR (moderate bullish).
Professional investors have made heavy bets on Technology growth stocks and specifically within the electronic payments industry. Many institutional investors may be looking ahead to an improving economic environment after the coronavirus pandemic. You can also say that professional investors believe the pandemic may be accelerating the need for more technology in the future.
The top 10 most widely-held stocks by Retail Investors are:
F (currently technically rated moderate bearish), GE (moderate bearish), AAL (moderate bearish), DAL (moderate bearish), DIS (neutral), CCL (moderate bearish), GPRO (neutral), ACB (bearish), MSFT (bullish), AAPL (bullish).
Surprisingly, MSFT is the only stock held by both Institutional and Retail investors, at least in their respective top 10 stock list. Another popular technology stock, AAPL, remains a favorite of retail investor account holdings coming in at number ten. However, AAPL does not show up on the institutional investor's top 10 list. Another interesting point is most of the stocks held by retail investors are moderate-to-lower stock prices and in economically sensitive industries.
With the end of the second quarter and the end of the first half approaching it will be interesting to see if window dressing activities will impact the financial markets.
Attached below are charts of the two lists. Attached below are charts of the two lists.