JPMorgan: Strong inflows into equity ETFs highlight the buy-the-dip strategy crucial for AI trades.

November 12 - JPMorgan strategists including Nikolaos Panigirtzoglou wrote in a report that strong inflows into equity ETFs indicate retail investors remain bullish on the stock market, and this support is crucial for stabilizing the recently battered AI trade.

According to the bank's latest flow and liquidity report, ETFs tracking global equities received approximately $20 billion in average daily inflows last week, accelerating further to $30 billion on Monday. Leveraged equity ETFs, primarily driven by retail investors, attracted nearly $5 billion in inflows on November 5 and 6. Inverse ETFs saw outflows of roughly the same magnitude during the week.

The report also noted that a pullback in call option buying could further amplify the impact of retail flows.