Retail investors pour USD 67 bn into US stocks as institutions retreat

Retail investors are still doubling down on US stocks, pouring USD 67 bn into equities y-t-d, just shy of the USD 71 bn they invested in all of 4Q 2024, the Financial Times reports, citing VandaTrack data. The surge comes even as institutional investors pull back from the market amid growing fears of Donald Trump’s tariff threats and broader political uncertainty.

It’s become second nature: “Dip-buying has been an essentially foolproof strategy for four of the past five years,” said Interactive Brokers’ Steve Sosnick. “Doing something that works remarkably well for so long means you’re conditioned to stick with it.”

… plus: FOMO. Many investors are more afraid of missing a buying opportunity than suffering further declines, noted independent strategist Jim Paulsen. Despite a 2% drop in the S&P 500 and an 8% slide in tech stocks this year, retail investors have been net sellers on only seven trading days in 2025, according to Goldman Sachs.

Familiar names still dominate: Many continue chasing last cycle’s gainers, piling into the same high-flying names that led past rallies over the past two years but have taken a hit this year. “Retail investors tend to gravitate toward well-known stocks,” said one assistant law professor. Last week alone, they snapped up USD 3.2 bn worth of Tesla shares and USD 1.9 bn in Nvidia, JPMorgan data shows.

The dip-buying strategy has yet to reap any rewards: A JPMorgan model portfolio tracking retail’s money flows in the market indicates that retail investors have lost 7% of their capital this year — nearly double the losses made by the S&P 500 so far, Bloomberg reports.

Meanwhile, institutional investors are heading for the exits. March saw their “biggest ever” retreat from US equities, according to Bank of America.

Is this a red flag? “Back in 1999, when my housekeeper started asking which stocks to buy, that’s when things started to fall apart,” quipped one strategist.

MARKETS THIS MORNING-

Asian markets are still cheering the likelihood of a softer-than-expected tariff policy from the US, with Japan’s Nikkei, South Korea’s Kospi, and Hong Kong’s Hang Seng all up. China’s CSI 300 remained flat. Over on Wall Street, futures are also pointing towards more stability after stocks continued to gain ground yesterday, recovering from last week’s losses.

THE CLOSING BELL-

The EGX30 fell 0.2% at yesterday’s close on turnover of EGP 2.9 bn (17.2% below the 90-day average). Regional investors were the sole net sellers. The index is up 6.8% YTD.

In the green: Juhayna (+4.0%), Credit Agricole (+2.3%), and Madinet Masr (+1.8%).

In the red: Egypt Aluminum (-4.4%), Palm Hills Developments (-3.4%), and Emaar Misr (-3.4%).

CORPORATE ACTIONS-

#1- FRA greenlights Premium Healthcare’s massive capital hike: The Financial Regulatory Authority approved Premium Healthcare Group’s capital increase, according to a statement from the authority (pdf). The healthcare firm plans to boost its authorized capital to EGP 11.4 bn from EGP 315 mn currently and its issued and paid-up capital to EGP 2.4 from EGP 81.5 mn through issuing 22.8 bn new shares at a nominal value of EGP 0.10 per share.

#2- CIB will pay shareholders a dividend of EGP 2.5 per share for its 2024 earnings, according to an EGX disclosure (pdf).

#3- Credit Agricole’s General Assembly approved distributing a dividend of EGP 3.2 per share on its 2024 earnings, according to a disclosure to the EGX (pdf).

#4- Saib Bank lowers 2024 dividend payout: Saib Bank will distribute dividends of USD 0.52 per share to shareholders for its 2024 earnings, down from the proposed USD 0.6 per share, according to an EGX disclosure (pdf).