Despite a rough start to Trump’s first 100 days back in office, individual investors are throwing caution to the wind and buying the dip at a record pace, even as Wall Street steps back.
According to Bank of America (BofA) data, individual investors have now been net buyers for 21 weeks straight, the longest streak on record. That’s more than twice as long as the previous record set in 2021–2022.
Over the last four weeks alone, Bank of America’s private clients bought $2 billion worth of stocks, a new high. Meanwhile, hedge funds sold a record $1.5 billion. Institutional clients pulled $2.7 billion, the second-largest outflow ever recorded.
“This is a much larger divergence between retail and institutional investors than during the 2022 bear market,”“This is a much larger divergence between retail and institutional investors than during the 2022 bear market,” The Kobeissi Letter wrote.
“The Main Street and Wall Street divide is massive.”
This is absolutely incredible:
undefined The Kobeissi Letter (@KobeissiLetter) May 8, 2025
Individual investors have been net buyers of equities for 21 consecutive weeks, the longest streak on record, according to BofA.
This is more than DOUBLE the previous records seen in 2021 and 2022.
Over the last 4 weeks, BofA’s private clients… pic.twitter.com/3buHEBouhW
The BofA data shows a growing number of retail investors are buying the dip, picking up stocks during sell-offs in hopes of lowering their average cost.
InvestorsObserver first reported the trend on April 8, shortly after Trump’s “Liberation Day” tariff announcement sparked a market slide that drew comparisons to the early pandemic crash.
That strategy may already be paying off.
Stocks bounce back after tariff-driven selloff
Markets took a beating in early April. The Nasdaq briefly fell into bear market territory, and the S&P 500 was down more than 15% for the year. At the worst point, markets had lost a combined $5 trillion in just two days.
But after Trump announced a 90-day pause on most tariffs and hinted at more trade deals, stocks started to recover. The Nasdaq has since cut its year-to-date loss to 6.5%. The S&P 500 is down less than 4%.
Trump’s trade agreement with the United Kingdom helped lift the mood. “You better go out and buy stock now,” he told reporters from the White House.
Some analysts questioned how meaningful the deal really is but say it was enough to shift sentiment in the markets.
“A trade agreement — even if it’s just in principle — is what the markets were looking to see,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
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