NEW YORK : U.S. retail investors have been dip-buyers so far in 2022, snapping up equities that funds have shed from their portfolios in light of a more hawkish Federal Reserve, but with a focus on quality stocks as opposed to speculative names.
"Buy the dip has been successful for how many – 8 or 10 years now – and I think that people still see opportunities when they look around for potential investments and the U.S. stock market is still the best game in town," said JJ Kinahan, chief market strategist at retail brokerage TD Ameritrade, which is owned by Charles Schwab Corp.
Individual investors have been focusing on stocks such as Tesla Inc and Apple Inc, as well as tech-focused and leveraged exchange-traded funds , while they have been net-sellers of stocks related to gaming, sports, and cannabis themes, said Giacomo Pierantoni, analyst at investment research firm Vanda.
Bank of America Securities analysts said retail clients and hedge funds were buyers of U.S. equities last week, with around US$500 million in net buys, as the S&P 500 fell 1.9per cent.