“While Stock Rally Continues, Many Retail Investors Remain Cautious”
Despite the recent stock rally, not all investors are eager to join the party. The S&P 500 index had a strong performance in November, driven by optimism that the Federal Reserve is done raising interest rates and falling US Treasury yields. However, retail traders are not jumping into the stock market. The TD Ameritrade Investor Movement index for November showed that retail investors were net sellers of stocks, and a record amount of cash is parked in money market funds. Retail investors, scarred by last year’s sell-off, are taking a more conservative approach, with many preferring fixed income investments.
