Retail investors sold aggressively during Monday’s stock market sell-off over economic slowdown fears, while institutional investors bought the dip
Investors (retail wise) were aggressive sellers on Monday's stock market sell-off as equities across the entire market pulled back with a fear of the US economy slowing down. Most of the selling pressure occurred during the first hour of trading, JP Morgan strategists stated. Institutional investors, on the other hand, bought the dip during the market pull back. The current downtrend has not altered Retails longer-term positioning. However JP Morgan took advantage of the dip while retail investors sold off during the scare earlier this week.
Investors are still concerned that the economy is slowing faster than anticipated. Not only this but there are still concerns surrounding the Federal Reserve keeping interest rates steady during its last policy meeting. Investors will now be watching for the next Fed meeting and keeping a close eye on the markets as we inch towards election day.