BofA’s institutional clients bought the dip last week while retail clients sold for a 4th straight week, as the S&P 500 fell 2.7%, its worst week since April 2025. ▪️ Institutions: +$6.1B, about $4B of it via equity ETFs (so broad buying into risk). ▪️ Retail: -$2.1B, dumping $3.4B of single stocks while still adding $1.4B of ETFs. ▪️ Hedge funds: small buyers for the 1st time in 4 weeks. Equity ETFs drew $5.3B, the 4th-largest week in BofA’s data, mostly into broad US large-cap index funds. So clients were buying the market, not picking names, while single stocks saw a 4th straight week of selling. But the retail dip-buying that has cushioned sell-offs since the April 2025 tariff shock so far is missing from this data. Per the CNBC article: Retail traders “have not been a ballast. We’ve talked a lot about how they do this ‘buy the dip’; they’re the support” for the broader market, Amy Wu Silverman, head of derivatives strategy at RBC Capital Markets, told CNBC’s “Squawk Box.” “Not only was that absent, it was going the other way.” “When you look at Thursday’s price action, it was kicked off by a lot of retail put buying. It was retail who got nervous and this sort of created a chain reaction with other aspects of the market,” Silverman said.
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