US retail investors turn bearish and elusive in latest selloff

US retail investors turn bearish and elusive in latest selloff

“Retail buying impulse showed signs of slowing before this latest burst of selling,” JPM strategist Peng Cheng said.

Individual U.S. investors are turning bearish and remaining from purchasing the plunge this week, data showed, a sharp inversion from the furious exchanging during the peak of the pandemic. Throughout the course of recent days, retail dealers sold $1.9 billion worth of shares, making it the biggest two-day outflow in 14 months, as indicated by business JPMorgan. It was not so until last week when they were net purchasers of equities, notching the highest level ever recorded on May 5, according to Vanda Research.

Rising borrowing costs, high inflation and the possibility of slowing growth have intensified market volatility this week.

The benchmark S&P 500 is within 2% of confirming a bear market for the first since the pandemic-led crash in March 2020 as the end of easy money pushes investors out of riskier bets.

Retail investor presence in equity markets too have dwindled compared to early last year when aided by fat stimulus checks and low trading fees, they flocked to online message boards to move markets while staying locked up in their homes.

As of Wednesday market close, U.S. retail traders accounted for about 12% of the total volume of shares traded compared to around 20% at the peak in January 2021, JPM said.

The average retail investor has also underperformed the S&P 500, making just about 6% since January 2020 compared to the 24% return of the benchmark index, JP Morgan estimated.

Retail buying is slowing, said Marco Iachini, senior vice-president at Vanda in a client note, but it could be “fatigue rather than outright capitulation” on their part.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Zipaworld plans to raise over Rs 3.8 crore in seed funding round
Zipaworld plans to raise over Rs 3.8 crore in seed funding round
Besides, the funds will be utilised to bolster the infrastructure; workforce expansion; global market penetration and elaboration of international network, ...
South Africa detects first case of Lassa fever since 2007
South Africa detects first case of Lassa fever since 2007
South Africa has identified an imported case of Lassa fever, a hemorrhagic virus harbored by rats and communicated to people. The infection is quick to be ...
US economic outlook weakens, inflation likely to persist
Russian inflation rises to 17.83% in April, highest since early 2002
Inflation in Russia has accelerated sharply after Russia began what it calls “a special military operation” in Ukraine on Feb. 24. Consumer inflation in ...
Tech Mahindra Q4 net up 39.2% YoY to Rs 1,506 cr, up 10% sequentially
Tech Mahindra Q4 net up 39.2% YoY to Rs 1,506 cr, up 10% sequentially
For the full year Tech Mahindra almost reached the revenue mark of $6 billion. For FY22 the company reported revenue of $5.99 billion. India’s fifth largest ...
UCO Bank Q4 net profit jumps more than 3 times to Rs 312 cr as bad loans fall
UCO Bank Q4 net profit jumps more than 3 times to Rs 312 cr as bad loans fall
For the full fiscal FY22, the bank’s net profit grew more than five times to Rs 930 crore from Rs 167 crore in FY21. State-owned UCO Bank on Friday posted ...
Modi-Deuba's Lumbini talks will cover a wide range of topics, including foreign policy.
Modi-Deuba’s Lumbini talks will cover a wide range of topics, including foreign policy.
Modi and Deuba, who visited India last month, will hold extensive talks. ”The fact that a return visit is taking place in such a close succession is a ...
The weekly losing trend on Wall Street continues
The weekly losing trend on Wall Street continues
Despite the day’s gains, the S&P 500 and the Nasdaq posted their sixth consecutive weekly loss, the longest losing streak since fall 2012 for the S&P ...
Air India's next CEO is Wilson has left the SIA group
Air India’s next CEO is Wilson has left the SIA group
Wilson, 50, has 26 years of aviation industry expertise across both full service and low-cost airlines. He is the founding CEO of low-cost airline Scoot, a ...
Maruti Suzuki selects a site in Haryana for a new production facility, with an initial investment of Rs 11,000 crore
Maruti Suzuki selects a site in Haryana for a new production facility, with an initial investment of Rs 11,000 crore
”There will be further investments as we go along,” Bhargava noted, without sharing any financial details. He said the facility would help the company cater ...
Swiggy Pieces high-end gastronomic market with acquisition of Dineout
Swiggy Pieces high-end gastronomic market with acquisition of Dineout
“Times Internet and the founding team should be credited for the transformational impact they have brought about in the dining out experience through their ...
Show next
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo