00:00 Speaker A
Recent market weakness spurred on by uncertainties surrounding President Trump’s trade policies has prompted a surge in stock buying from retail investors. Here to explain, we’ve got my Morning Brief co-host Madison Mills. Maddie, what do we know?
00:15 Madison Mills
That’s right, Brad. Well, Bank of America says its retail clients are on a record-breaking buying spree, snapping up stocks for 21 straight weeks. That is the longest streak since the firm started tracking the data back in 2008. Despite a volatile start to 2025 and concerns about President Trump’s renewed tariff threats, individual investors have been pouring money into U.S. equities, buying both ETFs and individual stocks. In fact, eight of 11 S&P 500 sectors have seen net inflows from this group, retail investors, year to date. It’s a clear sign that Main Street’s staying bullish even as Wall Street grows more cautious. Bank of America’s Michael Hartnett this morning, telling clients to buy the expectation and sell the fact, a fancy way of saying buy the rumor and sell the news. And then Peter Chier telling me this morning on set that he continues to advise clients to sell the rally as trade uncertainty remains in place. If institutional investors continue to sell any rally, it may be hard for retail investors to hold on to any market momentum to the upside for too long.