Retail investors trained into this concept of buying a dip
Retail buyers are ‘completely confusing’ institutional players, says Mark Hackett
Friday’s selloff marked a “typical response” for the institutional investors.
“Bad jobs data on top of the tariff launch and then you had the Russia submarine issue. There’s a whole lot of things together that caused the pullback in the market
and then you saw Monday which was almost a complete reversal,”
“To me, that is retail investors having been trained into this concept of buying a dip and it’s confusing institutional investors completely at this point,” he said.
“And then you go back to the April/May timeframe where institutions were completely on the sidelines, very conservatively positioned and the retail investors was aggressively buying dips.
Now it’s worked so many times, at this point, the retail investor has fueled this sense of inevitability about recoveries, and that’s what i think you saw [Monday] continuing a little bit today [Tuesday],”
The bottom line from Hackett is that “you don’t bet against the retail investor right now.”
That’s not to say that their power is unlimited and that buy-the-dip strategy might run out of steam, but now “the retail investor confusing the institutional investor out of doing what they want,” he said.
MarketWatch 6 August 2025
Kommentarer