Despite a stubborn inflationary environment and uncertainty around whether the Federal Reserve would raise rates again, retail investors continued to plunge cash into the stock market last week.
Retail investors, or non-professional investors, purchased $1.5 billion of single stocks in the week ending Tuesday, Bloomberg reported citing data compiled by JPMorgan Chase analyst Peng Chang, marking a single week record.
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And the investors aren't going bargain hunting, instead preferring to pile money into three blue chip names that have already seen major gains in 2023: Nvidia (NVDA), Apple (AAPL) and Tesla (TSLA).
The investors don't seem to mind that Nvidia is up more than 200% year to date, Tesla is up 140% year to date, and Apple is up nearly 50% in 2023.
It also seems that the "Inverse Cramer" crowd is mostly confined to the echo chambers of Twitter and Reddit because all three are stocks that he regularly recommends.
Nvidia's rise in particular has been a catalyst for the entire stock market as investors hope to get in on the artificial intelligence craze that Nvidia says will boost its revenue by 64% year over year in the current quarter.
That guidance has been enough to push the company, which had revenue of just $7 billion in the previous quarter to being valued at more than $1 trillion a month ago.
But even with that lofty valuation -- and incredible price to sales ratio -- investors seemingly have no problem buying into the stock.
Tesla, Apple and Nvidia are responsible for 43% of the S&P 500's gains this year, so while retail investors aren't bargain hunting, they do seem to be betting on stocks that at least seem safe -- for now.
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