Money-Losing Retail Crowd Keeps Buying Stocks as Market Teeters
From Yahoo Finance: 2025-03-21 05:30:00
Retail investors are undeterred by market turmoil, doubling down as losses mount. $12 billion poured into US equities in a week, above average pace, says JPMorgan Chase. Retail traders haven’t cut exposure to stocks, suggesting equities may not have bottomed yet.
Individual investors show “buy-the-dip” mentality, nursing 7% loss for the year as S&P 500 drops 3.7%. Retail traders continue buying as institutional buyers rotate out of US stocks at record pace. Wall Street takes bearish view as Goldman Sachs, Citigroup, HSBC lower US equity expectations.
Bank of America data shows private clients as net buyers of US equities for 14 weeks, while institutional clients and hedge funds become net sellers. Individual investor sentiment weakens, with bullish views below 20% for three weeks. No new highs expected for US stock market in first half of the year.
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