Retail investors are investing a record amount of money into the markets. Individual investors are piling a record $1.5 billion into the stock market every day. This pace has kept up over the past month and is the largest ever recorded.
Favorite Stocks
Tesla is at the top of the list for investors with $9.7 billion inflows into the stock this year. Tesla shares have gained 74% so far in 2023. This is after coming off its worst year on record in 2022.
Number two on the list is SPY, an ETF that tracks the S&P 500. Total inflows are $3.6 billion with the fund being up over 8% this year.
Amazon with $1.8 billion in new investments is number three on the list. The stock has risen around 20% this year.
Apple and Nvidia are next, both with around $1.5 billion in new investments. Both stocks are up in 2023. 19% and 55% respectively.
Institutional Bears
The retail investment community is bucking the trend of institutional investors who have remained bearish on stocks. Many are sitting on the sidelines or investing elsewhere. The job market remains strong, and individual investors continue to have buying power. The numbers show that a lot of that money is flowing into the markets.
Analysis
Retail investors are investing a record amount of money into the markets. So, what does this mean? Will retail investors help to prop up the markets? Are they going to eventually take big losses? If a recession comes, will the job market cool forcing investors to back off on purchasing stocks? Have you stepped up your investing, or are you maintaining your strategy? Maybe you are sitting on the sidelines. Share below.
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Writer and Investor. Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.