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Individual Investors bought over $2 Billion of Stocks yesterday!

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

$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.


SourceWSJ/Vanda research
Image: Wall Street.inc