Investors try to catch ‘falling knife’ with bets on risky funds during chip rout

Investors have been taking significant risks by betting on leveraged single-stock ETFs despite the market sell-off, pouring billions into these funds even as they plummeted. This strategy reflects a desperate attempt to profit from the downturn, often referred to as trying to "catch a falling knife." The context of this move comes amid a significant rout in the semiconductor industry, highlighting the lengths to which some investors are going to find opportunities in volatile markets. This trend underscores the growing willingness among investors to engage in riskier strategies in search of high returns.