(Bloomberg) – on the stock market beaten by business unrest and growing concern about economic slowdowns, retail investors double and do not cancel how their losses are installed.
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Individual merchants drew more than $ 12 billion in US stocks in the week of 19 March, the details of the retail of JPMorgan Chase & Co. The purchase pace was significantly higher than the 12 -month average of the group, according to Emmy WU, a global strategist at capital derivatives in the bank.
Market observers pay attention to retailers because they are often the last to reduce their stock exposure, so the last seizure of aggressive purchases from mum investors and pop may indicate that shares have not yet found a bottom.
The recent behavior of individual investors is characteristic of the “down” year in the stock market, Wu said. It was also seen in 2022, she noted. At that time, the capital benchmark sank 19%, the only one down the last six. “This is a characteristic feature of their” Buy-the-Dip “mentality,” Wu said.
Wu estimates that the group now treats 7% loss per year, while the S&P 500 has dropped by 3.7% up to Thursday. Benchmark dropped up to 1.1% to 11:00 on Friday in New York after the predictions of some major American businesses such as FedEx Corp., Nike Inc., Micron Technology Inc. and Lennar Corp.
When the wider market began to sell sharply at the end of February, retail traders remained passionate buyers and marked a sharp deviation from institutional buyers who alternated from US stocks at a record pace.
Friday's Report by Bank of America Corp. She found that her institutional and privacy were purchased by shares at a quick pace of a week to Wednesday, while global stock funds recorded the tide of about $ 43.4 billion – the largest amount this year.
The signal from the retail crowd is increasingly interrupted by a bearish view of Wall Street. Strategists from Goldman Sachs Group Inc., Citigroup Inc. and HSBC Holdings PLCs all in the last two weeks in their expectations for US stocks. Morgan Stanley Michael Wilson told Bloomberg on Thursday that there would be no new maximum for the US stock market in the first half of the year.
