Retail investors are trying to time the market and take advantage of the multi trillion-dollar market meltdown triggered by Trump’s new tariffs.
A new note to clients from JPMorgan Chase says mainstreet investors poured $4.7 billion into stocks on Thursday, representing the largest collective allocation in 10 years, reports Reuters.
-->Retail is primarily buying small-cap technology stocks in its attempt to buy the dip – a sector that institutional investors have increasingly bet against.
Retail investors are also focusing on Mag 7 stocks like Nvidia (NVDA) and Amazon (AMZN), although they are net sellers of Tesla (TSLA).
More than $5 trillion has been wiped out of US markets in the past two days amid President Trump’s massive tariff hikes, which have sparked fears of a global trade war and an impending economic downturn.
Today at time of publishing, the Dow Jones Industrial Average is down 1,602 points, representing a 3.9 drop, with the S&P 500 down 244 points for a 4.5 decline.
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