As Wall Street gets worried, retail investors keep buying US stocks
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Even as Donald Trump’s trade war sends the US stock market hurtling toward a correction, the individual investors who rode the bull run to record highs haven’t yet given up their faith. The so-called retail investors poured $7.3 billion into equities in the week through Wednesday, when they boosted exposure to perennial favorites like Tesla Inc., according to Emma Wu, a global quantitative and derivatives strategist at JPMorgan Chase & Co. They weren’t riding the usual momentum upward. In fact, the S&P 500 Index slipped over 4% and big tech stocks gave up even more. But, unbowed, they also put billions into leveraged exchanged traded funds that magnify the returns on indexes like the Nasdaq 100 or popular funds like the ARK Innovation ETF (ticker ARKK) run by Cathie Wood. Bloomberg The push reflects confidence that’s built up since the Global Financial Crisis as US equities — with a few exceptions — tended to rise year after year....