The buy-the-dip mentality is still strong among the retail investing crowd, even as markets are spooked by the latest developments in President Donald Trump’s trade war and the growing risk of a recession.
That’s evidenced by near-record levels of buying among retail investors since the stock sell-off picked up steam last month. Individual investors have plowed $32.9 billion into stocks since late February, according to data from Vanda Research.
Vanda Track/Vanda Research
That puts the buying in the 97th percentile of inflows over a 24-day trading period, according to data stretching back to 2014, the firm said.
Retail investors have been buying the dip mostly in mega-cap tech names and among chip stocks.
The 10-day moving average of retail flows into the Magnificent Seven stocks climbed to its highest level since mid-2024 when investors bought the dip as Nvidia shares declined 30% from a peak of $135 a share last June.
VandaTrack/Vanda Research
Nvidia remained the most popular retail stock, with net flows reaching 1.39 billion in the last five trading days. Nvidia shares are down 18% year-to-date.
Tesla was the second-most popular stock among retail investors, who bought a net $811 million worth of shares in the last five trading days. The stock is down 28% year-to-date.
Palantir, Amazon, and Advanced Micro Devices were also among the top five most popular retail stocks in the last week, with investors pouring in a net $417 million in the three companies.
The aggressive stock buying stands in contrast to the jitters on Wall Street, with forecasters growing more concerned over the impact of Trump’s trade war on the economy and the potential for the US to enter a downturn sometime this year.
Citi and HSBC downgraded their ratings for the US stock market this month, citing growth concerns in the US. Meanwhile, Goldman Sachs, RBC, and Barclays have also trimmed their price targets for the S&P 500.
Retail investors also appear unfazed by recent data showing consumer sentiment is plunging. Consumer confidence declined for the fourth straight month in March, while expectations for income, business activity, and the job market declined to a 12-year low.
“Retail investors are leaning into what they know best—buying the dip. Despite a looming tariff showdown and a flurry of mixed signals from macro data and sentiment surveys, individual traders are putting real money to work,” Vanda Research said in the note. “Flows speak louder than feelings.”
