Are retail investors starting to get tired of market volatility?
Pay attention to what's happening behind the scenes on Wall Street: $SPY
After a long period of exceptional enthusiasm in the markets, it seems retail investors (who are essentially private individuals investing their money independently, meaning you and us) are starting to ease off the gas?
Although last February was recorded as the third strongest month in history in terms of purchase volumes, the reality quickly changed with the escalation of security tensions with Iran.
Since the beginning of the conflict, the volume of weekly stock purchases has dropped by 30%.
In addition, the flow of funds into ETFs also decreased by 22% in the last week.
Last Monday saw the largest daily sale of individual stocks in a month, and although investors resumed purchases on Tuesday and Wednesday, their pace remained significantly lower than the annual average.
A war vibe?
This pattern is very reminiscent of the early days of the war between Russia and Ukraine in 2022.
Then, investors initially bought energy stocks and ETFs, then shifted to selling as pressure mounted.
And eventually returned to buying as the situation on the ground became clearer.
The question we all need to ask ourselves
Is the sharp and rapid volatility in stock prices simply starting to exhaust the general public looking for stability?
We are monitoring, we will continue to update