Some data worth noting:
According to VandaTrack and Yahoo Finance, US retail investors net bought roughly $13 billion of US equities over the past month, the LOWEST level since 2020.
Yet retail gross turnover has climbed to a record $500 billion, double the level of mid-2024.
THAT means, even though retail looks active every day, but positions are being flipped quickly. Buys are offset by profit-taking, stop-losses, rotation, and short-term trades, leaving very little net exposure behind.
In short, retail is leaning into short-term trading and is currently unwilling to carry long-term risk.
The fresh capital actually staying in the market to bear long-term risk keeps shrinking.