Retail investors are pouring record amounts into US stocks, potentially giving small traders even greater sway over markets than at the height of the “meme-stock” mania two years ago.
Then, an army of bored amateur traders trapped at home during the pandemic drove up the share prices of several small, struggling consumer companies such as video games retailer GameStop, cinema operator AMC Entertainment and home goods chain Bed Bath & Beyond.
Now, their bets are more widespread, suggesting fresh appetite following the losses many suffered last year. The flows of retail cash has helped to drive a powerful market rebound at the start of 2023 despite a relative lack of enthusiasm among professional fund managers.