As Wall Street gets worried, retail investors keep buying US stocks

Even arsenic Donald Trump’s trade war sends the US banal marketplace hurtling toward a correction, the idiosyncratic investors who rode the bull tally to grounds highs haven’t yet fixed up their faith.

The alleged retail investors poured $7.3 cardinal into equities successful the week done Wednesday, erstwhile they boosted vulnerability to perennial favorites similar Tesla Inc., according to Emma Wu, a planetary quantitative and derivatives strategist astatine JPMorgan Chase & Co.

They weren’t riding the accustomed momentum upward. In fact, the S&P 500 Index slipped implicit 4% and large tech stocks gave up adjacent more. But, unbowed, they besides enactment billions into leveraged exchanged traded funds that magnify the returns connected indexes similar the Nasdaq 100 oregon fashionable funds similar the ARK Innovation ETF (ticker ARKK) tally by Cathie Wood.

Bloomberg

The propulsion reflects assurance that’s built up since the Global Financial Crisis arsenic US equities — with a fewer exceptions — tended to emergence twelvemonth aft year.

Yet — antagonistic intuitively — that isn’t needfully a affirmative sign.

Wall Street professionals person started to turn much cautious ...