New data reveals investor optimism as those going long outnumber those shorting stocks

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New data from ETP provider GraniteShares has revealed strong investor confidence as global economies recover and GDP growth forecasts increase. 

GraniteShares has several single stock 3x leveraged and 3x short ETPs listed on the London Stock Exchange, covering a selection of FTSE 100 companies and popular US tech stocks. In the first three months of 2021, USD295 million was traded in these ETPs, with about two thirds, or USD211 million, in its leveraged long products suggesting investors are optimistic about the share prices of these stocks rising. Just USD83 million – 28 per cent of the total value – was traded in GraniteShares single stock short ETPs. 

Investors have also been far more active since the beginning of the year. The value traded in GraniteShares single stock leverage and short ETPs listed on the LSE in Q1 2021 was about 40 per cent higher than in Q4 last year. 

The most traded 3x leveraged GraniteShares single stock ETP in Q1 2021 was Tesla (3LTS), followed by Rolls-Royce (3LRR) and BP (3LBP). In terms of the most traded 3x short GraniteShares ETPs, Tesla (3STS) was followed by Barclays (3SBC) and Uber (3SUB). 

Most traded single stock 3x leveraged long GraniteShares ETP in Q1 2021 Value traded in Q1 2021 in $ million Percentage of total traded 

Will Rhind, Founder and CEO at GraniteShares, says: “As the Covid-19 vaccination programme gathers pace there is growing optimism around the world – especially in developed markets. This is reflected in the fact that the International Monetary Fund has recently increased its GDP growth forecasts for 2021 for several leading developed countries, including the UK and US. This filters its way into the psyche of investors and their confidence is rising. 

“With lockdown and more time on their hands, many investors have also dramatically increased the time they spend reviewing their finances, which means many have been trading shares more.” 

A study from GraniteShares found 12 per cent of Brits who have bought or sold shares during the Coronavirus crisis –  some 2.2 million people – are trying to make it as day traders and dramatically enhance their incomes. Two thirds (66 per cent) of them are men and 34 per cent are women. 

Of those people interviewed who are trying to be day traders, 16 per cent are aged 18 -24, and 43 per cent are between 25 and 34. One in five (20 per cent) are aged between 35 and 44, and the remainder are 45 and over. 

The most popular reasons for trying to make a living through day trading are a near tie between people believing they can earn more through trading and those who say Coronavirus has inspired them to work for themselves. 

GraniteShares research found furlough and redundancy have played a part in the rise of the day trader – 23 per cent of the new day traders have struggled to find a job after redundancy while 18 per cent have been furloughed. Nearly a quarter (23 per cent) say they got a taste for trading during lockdown and now want to go full-time. 

GraniteShares currently offers 54 exchange traded products (ETPs) listed on the London Stock Exchange. They consist of a suite of index ETPs tracking FAANG stocks and a suite of Short and Leveraged Single Stock Daily ETPs tracking some of the most popular companies in UK and US markets.