Retail investors are buying U.S. stocks aggressively

Individual investors are buying US stocks in large numbers, pouring nearly $70 billion into the market this year. This trend continues despite professional money managers reducing their investments due to concerns about Donald Trump's policies. The data shows that while retail investors have invested $67 billion in 2025, this is only slightly less than the $71 billion invested in the last quarter of 2024. These retail investors, often referred to as "have-a-go" investors, are optimistic about the stock market. They are utilizing a strategy called "buying the dip," which has worked well for many over the past few years. Steve Sosnick, a chief market strategist, noted that this strategy has become ingrained in the mindset of many investors. Despite a 2 percent drop in the S&P 500 this year, individual investors remain active. Many have flocked to popular stocks like Tesla and Nvidia. For example, last week retail traders invested $3.2 billion in Tesla and $1.9 billion in Nvidia alone, according to JPMorgan Chase. Even as the market has faced volatility, retail investors remain focused on capturing opportunities. They appear more worried about missing chances to buy at lower prices than about potential market downturns. However, some experts caution that this enthusiasm from retail traders could signal trouble. They remember similar trends from past market downturns, suggesting that high retail activity can sometimes precede market declines.