Posted 3/7/2024, 4:08:00 PM
Signs of Moderation Emerge as Investors Embrace Caution over Speculation
- Retail investors are not taking on high levels of leverage to buy stocks, suggesting a lack of speculation
- IPO activity has slowed dramatically compared to 2020-2021, with fewer companies going public
- First-day returns for recent IPOs have been more muted compared to the IPO frenzies of 1999 and 2021
- Investors seem focused on quality and profits rather than speculative growth opportunities
- Many investors are buying put options to hedge long stock exposure, indicative of caution rather than irrational exuberance