(Bloomberg) – In the market market, which is disguised as trade turmoil and an increasing fear of economic slowdown, retail investors double, undoubtedly as their losses increase.
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Some merchants have inserted more than $ 12 billion into US sections in the week that ended on March 19, showed data on retail trading JPMORGAN Chase & Co. The tempo of the purchase was significantly higher than the 12-month average of the group, according to Emma Wu, a global capital strategy at the bank.
Observers on the market are watched by the retailers, because they are often the last to reduce their presentation of shares, so the latest aggressive purchase from Mom and Pop investors can suggest that the shares have not yet found the bottom.
The recent behavior of individual investors is characteristic of the “fall” of the year on the stock market, Wu said. She was also seen in 2022, she noted. Then the reference value of capital sank 19%, the only year in the last six. “This is a sign of their mentality” buy, “Wu said.
Wu estimates that the group now touches a loss of 7% of the year, while the S&P 500 fell 3.7% by Thursday. The reference value dropped as much as 1.1% to 11am on Friday in New York, after the forecast of some major American corporations such as FedEx Corp., Nike Inc., Micron Technology Inc. and Lennar Corp. They added to the wider uncertainty about tariffs and economic growth.
When the wider market began to be sold out at the end of February, retail traders remained passionate customers, which indicated a sharp deviation from institutional customers, who rotated from US shares with a record pace.
A report from the Bank of America Corp on Friday found that both his institutional and private clients bought shares of fast pace on the week until Wednesday, with global funds recorded about $ 43.4 billion – the largest amount of this year.
The retail audience signal covers all the bear view of the Wall Street. Goldman Sachs Group Inc., Citigroup Inc. And HSBC Holdings PLC have all have managed in their expectations for US shares in the last two weeks. Michael Wilson of Morgan Stanley said on Thursday Bloomberg television that there will be no new highlights for the US Stock Exchange in the first half of the year.
