From CNBC: 2025-03-18 14:10:12

Individual investors have shifted away from buying the dip strategy as the S&P 500 faced a 10% correction, leading to $4 billion in retail outflows. 401(k) holders have been trading aggressively during the sell-off, with household equity ownership reaching record levels.

President Trump’s tariffs and policy changes have stirred market volatility, leading to fears of economic slowdown and a possible recession. The S&P 500 officially entered a correction, dropping 8.7% from its all-time high. Despite this, retail traders are still active, with sentiment staying elevated.

Retail investors have not yet given up on the equity market, as shown by the net debit of margin accounts staying high. Barclays’ euphoria indicator, while lower than before, still remains historically high. Most investors are not reacting drastically to the market conditions, showing resilience in the face of uncertainty.

Read more: Retail investors ditch buy-the-dip mentality during the market correction