⚠️CHART OF THE WEEK: Retail investors are buying US stocks like crazy

Retail investors stock purchases have been one of the largest in history

Mom-and-pop investors have bought a massive $8 billion in US stocks and ETFs in 5 days ending Tuesday, according to Vanda Research data.

As a result, 5-day moving average of retail net inflows hit $1.6 billion, the 4th-largest on record. In the past, the 5-day average of purchases was only higher in January 2021, March 2023, and August 2024.

In other words, individual investors have been trying to buy-the-dip as the market plummeted. Will the strategy work again this time?

My thoughts about that in the summary of the recent piece about the US job market:

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