Individual investors scooped up a net $2.05 billion of U.S. stocks and exchange-traded funds on Tuesday!
The second-largest daily sum this year, according to Vanda Research data.
Their buying trailed only the $2.58 billion they purchased on a net basis on May 5, when the S&P 500 fell 3.6%.
Tweet on stock ‘buy the dip’ trading day
Individual Investors bought over $2 Billion of Stocks yesterday!
Investors scooped up a net $2.05 billion of U.S. stocks and exchange-traded funds on Tuesday, the second-largest daily sum this year, according to Vanda Research data, @wsj reportshttps://t.co/6ajv4GQ5LT
— The_Journalbiz (@the_journalbiz) September 14, 2022
$2 BILLION Investment is stocks for a day!
Apparently not everyone was selling as the U.S. stock market tumbled Tuesday.
So-called retail investors have frequently bought the dip as the stock market has tumbled this year, a shift from the group’s strategy for much of the past two decades. (You can read more about that here.)
But their buying on Tuesday, when the S&P 500 tumbled 4.3%, is notable because individuals’ buying has been on a downward trend lately.
Individual investors have purchased a daily average of $1.19 billion of U.S. equities on a net basis in September, according to Vanda, down from a 2022 peak of $1.39 billion in January.
One big reason for the buy the dip mode, is that the the average retail investor is sitting on an average paper loss of 27% this year, Vanda Research estimates.