JPMorgan projects a significant 53% increase in U.S. retail investor stock market inflows by 2025, fueled by rising trading volumes and the popularity of zero-commission platforms. The bank anticipates retail participation could account for 20%-25% of total trading volume, with a peak of 35% observed in April.
Analysts highlight the crucial role of retail investors in market dynamics, particularly during downturns, which have helped the S&P 500 achieve new highs. Exchange-traded funds (ETFs) are increasingly favored by individual traders. Despite the optimistic outlook, analysts caution about potential risks, especially as the trend is expected to persist into 2026 amid possible Federal Reserve rate cuts.
JPMorgan Predicts 53% Surge in U.S. Retail Stock Market Inflows by 2025
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