| Ripple Effect — May 8, 2025
Since the Liberation Day dump and subsequent pump, markets are higher. And with the news cycle turning every trade headline into a reason to rally further, it may seem silly to think stocks could pull back from here.
But we’re skeptical. That’s because this market rally isn’t being bought by big institutions like hedge funds or asset managers. It’s being bought almost entirely by retail investors.
Just look at the fund flows over the past few weeks:  Retail investors aren’t just bullish. They’ve aggressively bought the dip in March and April – even before Trump’s Liberation Day announcement crushed stocks.
Who can blame them? They’ve had 15 years of training to buy any market dip. From ZIRP (zero interest rate policy) in the 2010s to stimmy checks, there’s always another bailout just over the horizon (until there isn’t)...
Time will tell if they’re right. For now, the wiser course of action is to be patient, and not overpay for a stock just because it’s heading higher. It would be unusual for markets to keep trending higher with all the uncertainty right now.
-Andrew P.S. As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)
How did we get here? Find out in these riveting reads: Demise of the Dollar, Financial Reckoning Day, and Empire of Debt — all three books are now available in their third post-pandemic editions. You might enjoy one or all three. 
(Or… simply pre-order Empire of Debt: We Came, We Saw, We Borrowed, now available at Amazon and Barnes & Noble or if you prefer one of these sites: Bookshop.org, Books-A-Million or Target.)
Please send your comments, reactions, opprobrium, vitriol and praise to: feedback@greyswanfraternity.com |
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