By coinnews 
00:00 Speaker A
Buying the dip is paying off for retail investors. New data from investing app Public showing investors who bought the dip between April 3rd and May 9th, have earned a nearly 12% return. Here with us now, Leif Abraham, Public founder and CEO. We also have Amy Wu Silverman from Still on set with us. Leif, it’s great to have you here. I’m very excited to get a sense of retail to some degree winning the first round of volatility under this administration. Talk me through the activity that you’re seeing from these investors.
00:41 Leif Abraham
Yeah, thanks for having me. Yeah, I mean like the, the concept of buying the dip has definitely become sort of retail investing culture. And like if, if I would kind of look back at it is that, you know, it took for example, after the great financial crisis, it took, I think five and a half years or so for the S&P to actually recover. Everything basically past that point has been fairly V-shaped in most cases. So if you entered the markets post ’08 essentially, you kind of were this trajectory where you’ve a little bit learned through our time that markets always come back and some regards, no financial advice. But um, and, and I think that has a little bit like led to this culture of this, of this dip buying specifically.
02:04 Speaker A
But it’s a culture that institutional investors did not participate in this round. Talk to me about that bifurcation that you’re seeing.
02:16 Leif Abraham
Yeah. Yeah, I think, um, first off, most retail investors who invest for themselves, they invest for, you know, their own futures and also a little bit more for the long term. And so I think people in most cases end up buying to essentially add to their portfolio. They’re not necessarily trading around all the balance, they’re just adding to the portfolio, right? They have income coming in from their paychecks, they’re putting that into the markets. And so they’re just more in this mindset of like, I want to compound my money over time for retirement, for my kids’ future college, or whatever it might be. And so I think that just puts people into a different mindset, right? Where you have a bunch of institutions who might, you know, optimize for, you know, Q4 bonus time or so on. And so therefore you have a little bit more short-term thinking, I think built into the system than actually most retail investors have in their mind.