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 ADX fell 0.3% yesterday on turnover of AED 1.2 bn. The index is down 0.8% YTD.

In the green: Sharjah Cement and Industrial Development Co. (+14.8%), RAK Properties (+4.0%) and Sudatel (+3.1%).

In the red: GFH Financial Group (-5.2%), Multiply Group (-4.2%) and Abu Dhabi Ship Building Co. (-4.0%).

Over on the DFM, the index remained flat yesterday on turnover of AED 771.7 mn. Nasdaq Dubai was down 0.4%, and up 0.6% YTD.

CORPORATE ACTIONS-

EshraqInvestments is looking to terminate its management agreement with Shuaa GMC due to concerns over significant discrepancies in the valuation of the Goldilocks Fund, Zawya reports. Changes in valuation methods led to a AED 497 mn reduction in the fund’s underlying assets in 4Q 2024.

REMEMBER- Eshraq reported widening losses for FY 2024, reaching 679.4 mn, up from AED 545.1 mn in 2023, according to Eshraq’s financials (pdf). The losses are driven by asset write-downs in the Goldilocks Fund, which was launched in 2015 and acquired by Eshraq in 2022. The company has taken legal action to accelerate the termination of the agreement.

ICYMI- Eshraq said back in June that it was evaluating options for the fund, including taking over full management, exiting, or co-managing it with Shuaa Capital.

Adnoc Logistics and Services’ approved a total dividend of USD 273 mn (AED 1 bn) for 2024, reflecting a 5% y-o-y increase, in line with the company’s progressive dividend policy, according to an ADX disclosure (pdf). A final dividend payment of USD 136.5 mn (AED 501.3 mn), equivalent to 6.78 fils per share, will be distributed on 3 April.

Looking ahead: Adnoc L&S expects net income growth in 2025 to be in the low double-digit range. The company anticipates revenue growth this year in the mid-to-high 40% range, with a compound annual growth rate in the low single digits between 2026 and 2029. Additionally, Adnoc L&S projects its organic investment spending to increase by at least USD 3 bn by 2029.

State-owned district cooling firm Tabreed approved distributing AED 441 mn in dividends for 2024, according to a DFM disclosure (pdf).