US equities – Retail investors pile in, but can retail alone ignite a bull market?

Retail investors poured a record $40 billion into equities in April, according to JP Morgan, marking the largest monthly inflow on record.

• The surge underscores a renewed wave of optimism among individual traders, even as institutional investors tread cautiously amid macroeconomic uncertainties and volatile rate expectations.
• Analysts say the buying spree was concentrated in technology and momentum names, with retail flows helping to cushion broader market dips.
• JP Morgan noted the trend reflects growing retail resilience and a willingness to buy the dip, despite persistent concerns over inflation, geopolitics, and central bank policy.

I don’t know about anyone else but I’ve seen this info kicking around, and approved of by folks who normally dismiss retail trader activity as dumb money and what have you. Political motivations, though, you know?

Despite being a retail trader myself I am not confident that a surge in retail buying is a solid base upon which to build a renewed bull market. The absence of institutional interest is red flag for me.

This article was written by Eamonn Sheridan at www.forexlive.com.