howRetail Traders Continues to Buy the Dip, Not a Good Sign?
@MillionaireTiger:Related Link: Don't Miss it: Three Postures to Buy Dip Of US Stocks! Data shows the recent market correction hasn't scared off retail investors, Equity Inflows Every Day of January. Retail investors are "buying the dip" in U.S. stocks. Vanda Research said on Wednesday: Retail investors have bought stocks every day in 2022, while more experienced retail investors who are feeling the sting of losses have pulled back. Vanda Research pointed that daily inflows have been above the 2021 average in all but two of the days in January. These inflows come at a time when markets have been getting crushed. Through yesterday, the S&P 500 was down 9.3% so far this year, while the tech-heavy Nasdaq Composite Index had fallen 14.5%. According to data from Bloomberg Intelligence: Retail investors are a small part of the market. In the past few quarters, they've made up about 20% to 25% of all equity volume, So they won't have a massive impact on day-to-day market moves. Data on new brokerage accounts released by Charles Schwab shows monthly growth rose to 233,000 in December from an average of 133,000 from June to October. “The correction in January has probably attracted an even larger pool of investors that were waiting for an opportunity to join,” said Vanda. Retail traders are still snapping up shares in 2022, following a trend that started during the pandemic in 2020. Is this a good sighn? Stansberry Research Analyst Nick Koziol commented: " We like to look at retail trading data from a contrarian point of view. When retail investors are overly bullish, we get cautious. And when they're bearish, that's usually the time to buy in. Right now, it looks like retail investors are still bullish – as seen in their buy the dip mentality this month. That could be a reason to be cautious on U.S. stocks in the near term." SHARE YOUR THOUGHTS What's your opinion on the retail investors inflow? Being Positive or nagative? You may be rewarded with Tiger Coins for sharing your opinions in the comment💸💸💸 Follow me! Don't forget I am the richest tiger in this community😎😎
Retail Traders Continues to Buy the Dip, Not a Good Sign?Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.