Retail investors are retreating from dip-buying strategies amid heightened
market volatility tied to the U.S.-Iran conflict. JPMorgan data show retail
flows fell to $3 billion in the week of March 19–25, below the $6.8 billion
12-month average, with purchases at 30% of pre-war levels. The S&P 500 has
dropped about 5% since late February. Vanda Research said, “The trend since the
start of March has been one of gradually receding retail participation,
alongside systematic deleveraging and only modest buying from long-only and
hedge fund investors.” JPMorgan’s Arun Jain added, “Monday stood out as
particularly weak… retail appeared to capitulate — turning net sellers for the
first time in 9 months as they ‘sold the rip.’”
