Retail Investors Start Chasing Gains: JPMorgan Data Shows Sharp Rebound in Buying Activity
According to JPMorgan data, retail traders who had largely stayed on the sidelines during the previous stock market rally are now starting to chase gains.
The bank's latest client flow data shows a sharp rebound in retail buying activity, with overall participation jumping from around the 10th percentile a few days ago to the 55th percentile. This recovery indicates that retail investors are beginning to catch up as major stock indexes hover near record highs.
The rebound was mainly driven by a surge in individual stock purchases, which rose to the 71st percentile over the past year. In contrast, demand for exchange-traded funds weakened, with ETF inflows falling from the 53rd percentile to the 33rd percentile from the previous week.
