RETAIL INVESTORS TURN SELLERS AMID MARKET VOLATILITY
Citadel Securities reports retail investors sold U.S. stocks and options last week, a rare shift from years of persistent buying. Net spending fell 55% in March from February and 70% from January’s peak.
Options activity turned defensive, with increased demand for downside protection. Historically, such retail selling signals stronger near-term S&P 500 gains, averaging 4.1% over two months.
The shift follows March volatility driven by rising oil prices and the Iran conflict, which sent the S&P 500 down 5% and Brent crude up 80% this year.
BARCLAYS: KEEP BUYING DESPITE MARKET FEARS
Stocks have struggled this month, with the S&P 500 down 4.2% amid the U.S.-Iran war, rising oil prices, and persistent inflation. But Barclays says investors should stay invested.
Strategist Ajay Rajadhyaksha argues fundamentals remain stronger than sentiment suggests, pointing to solid U.S. earnings and ongoing investment cycles.
Markets appear to expect a short-lived conflict, with bonds and other assets pricing in a temporary inflation shock rather than prolonged disruption. Oil prices have risen, but not dramatically over the long term.
Despite volatility, the S&P 500 is still within 6% of its record high, and market stress indicators have eased. Bottom line: uncertainty is high, but Barclays says it’s a “wall of worry” investors should keep climbing.