Investor cash continued to pour into stocks last week amid a retail trading frenzy that saw shares in GameStop soar over 2,500% year-to-date at one point, BofA’s weekly flow data showed on Friday, reports Reuters.
Inflows in the last three months soared to a record $272 billion. U.S. small cap firms, at the centre of amateur trading, saw their second-largest inflow ever, of $29 billion.
Crowds of solo traders herd buying, pumping up and squeezing out hedge funds from their bets against ailing companies, have shaken financial markets in the past week, with analysts worrying about the systemic implications of a retail speculative bubble bursting.
BofA analysts compared this new trend, often described as a populist market revolt, to the 2011 “Occupy Wall Street” movement against financial inequality.
