What Assets are Retail Traders Buying?

The U.S. equity market continued its steady march higher today, with all 3 major indices making new record highs. And, LikeFolio data shows that US-based retail traders’ appetite for investment remains healthy.

Consumers’ Mentions of investing in stocks or the stock market have declined -7% QoQ and -5% YoY (30-day moving average).

Although the 30-day trendline appears relatively flat vs. the prior year, it’s important to remember the unprecedented surge of a new equity investors that appeared last year: Stock Investment Mentions are still trending +97% vs. 2019.                            

But, why isn’t interest in the stock market at an all-time high alongside the indices?

Stock investment chatter soared to an ATH in late January 2021, prompted by the infamous $GME short squeeze -- Since then, we've seen retail traders flood into alternative assets at a faster pace.

Demand for cryptocurrencies as an investment exploded this year, with consumer mentions trending +341% YoY and +189% YTD on a 30-day moving average.

Additionally, Mentions of purchasing or investing in precious metals rose to new highs in the wake of the $GME squeeze, now trending -26% YoY on a 30-day moving average.

Like with the near-term weakness seen in Stock-specific investment Mentions, it's helpful to remember that Crypto investing and PM investing are both maintaining an increase vs. 2019: +603% and +21% respectively.

The trendlines have pulled back alongside the price of the underlying assets and could return to all-time high levels if momentum returns.