Retail traders haven’t been upping their investments ahead of the coming earnings season the way they have in past quarters.
According to Vanda Research, which tracks investment flows from retail buyers and sellers, individual-investor inflows are more muted with another round of earnings reports around the corner.
“Although investors typically become more active before earnings reports, trying their luck with their favorite stocks, we are not seeing signs of this trend,” Vanda said in a report Wednesday. Concerns about an economic slowdown “are deterring individual investors from adding exposure to more traditional industries,” the report said.
The firm pointed to Nvidia (NVDA), whose shares are up more than 150% year-to-date but have leveled off over the last month. The chipmaker briefly passed Microsoft (MSFT) and Apple (AAPL) in market capitalization to become the world’s most valuable company, “suggesting the stock might be in a bubble zone,” Vanda wrote.
“The peak of retail bullishness for NVDA seems to be …