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: TADAWUL-

The TASI fell 0.6% yesterday on turnover of SAR 5.5 bn. The index is down 2.7% YTD.

In the green: Masar (+7.7%), Abo Moati (+3.5%) and Bawan (+2.9%).

In the red: Mbc Group (-5.5%), Spimaco (-4.8%) and Sumou (-4.6%).

THE CLOSING BELL: NOMU-

The NomuC stayed unchanged yesterday on turnover of SAR 28.0 mn. The index is down 2.7% YTD.

In the green:Nbm (+9.3%), Balady (+7.6%) and Marble Design (+7.1%).

In the red: Alashghal Almoysra (-18.7%), Amwaj International (-8.7%) and Aictec (-6.0%).

CORPORATE ACTIONS-

AbdullahAl Othaim Markets’ board signed off on a SAR 99 mn dividend payout for 4Q 2024 at SAR 0.11 per share, it said in a disclosure to Tadawul. The distribution date is set for 23 April.

ALSO- The company outlined its dividend policy for the coming three quarters, with SAR 0.11 per share to be distributed for 1Q 2025 and SAR 0.12 per share for both 2Q and 3Q 2025, it said in a separate disclosure.

Saudi Industrial Investment Group (SIIG) received approval from the Capital Market Authority to reduce its capital by 10% to SAR 6.79 bn, it said in a disclosure to Tadawul. The reduction will be completed through the cancellation of 75.48 mn shares worth SAR 754.8 mn two days after obtaining approval from the extraordinary general assembly.

Lamasat Company’s board recommended distributing SAR 12 mn in dividends for 2H 2024 at SAR 0.15 per share, it said in a disclosure to Tadawul. The distribution date is yet to be announced.