Are you a retail investor feeling the pinch of tax season? Well, you’re not alone. In early April, data from Vanda Research revealed that retail investors went on a buying strike, contributing to the stock-market selloff during that time.
As tax deadlines loomed, many individual investors opted to hold onto their cash rather than investing it in the market. This lack of buying pressure from retail investors played a significant role in exacerbating the stock-market downturn.
So, if you’re wondering why your favorite stocks took a hit during tax season, this data sheds some light on the situation. It’s important to stay informed and consider market trends when making investment decisions, especially during volatile times like tax season.