economy
Trump volatility fatigue: Retail traders aren't buying the dips like they used to
Retail flows fell to $3 billion in the week beginning on March 19 and ending March 25, below the 12-month average of $6.8 billion.
TL;DR
- Retail investor participation and flows have fallen sharply since the start of the Middle East conflict.
- The 'TACO' strategy, which capitalized on President Trump's tariff threats, and general dip-buying have become less successful.
- Market volatility, rising oil prices, and inflation concerns have caused retail traders to pull back.
- Retail investors sold stocks on Monday, the first net selling day since November 2023, despite a market surge.
- Favored individual stocks among retail investors included Nvidia, Tesla, and Microsoft, with consumer staples leading.
- Energy, technology, and industrials sectors experienced the most selling.