Institutional investors represent the so-called big money that wields significant influence over the stock market. That influence manifests in many ways.
It’s fair to state that following institutional investors is often a strong strategy. Institutions have the ability to pool resources and buy large blocks of securities. That has a significant impact on price, for one. Further, institutional investors tend to have greater experience and more detailed knowledge of market constituents. That wealth of experience often leads to better outcomes and stronger returns.
That’s why paying attention to the institutional bets big money is making in the stock market this year is a wise strategy.
This post originally appeared at InvestorPlace.