Everyday investors are continuing to buy the dip aggressively, even as Wall Street reacts to renewed trade tensions and recession fears.
Since late February, retail investors have funneled $32.9 billion into equities, according to Vanda Research—placing this wave of buying in the 97th percentile of 24-day inflows since 2014.
This surge reflects a resilient risk appetite among individual investors, who are largely targeting mega-cap tech and semiconductor stocks. The 10-day moving average of retail flows into the Magnificent Seven has hit its highest point since mid-2024. That period also saw dip-buying activity spike as Nvidia shares fell 30% from a previous peak of $135 last June.
Nvidia remains the most favored name, attracting $1.39 billion in net inflows over the past five trading sessions, despite being down 18% year-to-date. Tesla follows closely with $811 million in net buying over the same period, even as it posts a 28% YTD decline. Palantir, Amazon, and AMD round out the top five, collectively drawing $417 million in net inflows last week.
This behavior sharply contrasts with the growing caution among institutional players. Analysts at Citi and HSBC have downgraded their U.S. equity outlooks this month, citing slowing economic momentum. Goldman Sachs, RBC, and Barclays have also trimmed their S&P 500 price targets in response to persistent macro uncertainty.
Economic data is reinforcing those concerns. Consumer confidence declined for the fourth straight month in March, with expectations around income, business conditions, and employment falling to their lowest level in over a decade.
Still, retail flows suggest investors are tuning out the noise. “Retail investors are leaning into what they know best—buying the dip,” Vanda noted. “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. Flows speak louder than feelings.”
For wealth advisors and RIAs, this divergence offers a clear opportunity—and a warning. While clients may feel emboldened by headlines of retail buying and rebounding tech names, advisors must balance this sentiment with a grounded assessment of market fundamentals, economic trends, and the potential downside of chasing momentum in a volatile policy environment.
