No fear of pullbacks! JPMorgan: Retail investors will continue to buy the dip, supporting U.S. stocks to rise through the end of the year.

``` J.P. Morgan strategists predict that strong capital inflows from retail investors will support U.S. stocks, and this momentum is expected to continue until the end of the year. According to media reports, the J.P. Morgan strategist team led by Nikolaos Panigirtzoglou pointed out in their latest research report that, based on seasonal patterns observed in the study of equity fund flows over the past decade, they found that except for U.S. election years, average inflows in December and the first quarter of the following year tend to be stronger. In September and October this year, strong demand from retail investors for equity assets was reflected in inflow data through tools such as ETFs. Panigirtzoglou and his colleagues wrote in the report: "From a seasonal perspective, the strong momentum of retail stock investment in the past two months is likely to last until early 2026.” ETF inflows hit post-election high, S&P 500 has risen for six consecutive months The team said that equity ETFs recorded about $160 billion in inflows in both September and October, marking the strongest pace of buying since the end of the U.S. election in November-December 2024. This level of inflow reflects retail investors' continued confidence in the stock market. At the same time, the S&P 500 Index has just achieved its sixth consecutive monthly increase, marking the longest winning streak since August 2021, with a cumulative gain of nearly 6% in September and October. So far this year, the index has set 36 new closing highs, mainly driven by surging prices of major technology stocks fueled by the artificial intelligence boom. Short-term corrections unlikely to stop the long-term trend Although recent gains in global stock markets have slowed—partly due to profit-taking triggered by overvalued tech stocks, and retail-favored AI concept stocks and cryptocurrencies have also adjusted—Wall Street analysts generally believe such pullbacks are only short-term phenomena. Goldman Sachs partner Richard Privorotsky noted that declines in crypto assets and pressure on unprofitable tech company stocks are reasonable manifestations of internal capital rotation in the stock market. He said: "Retail investors are experiencing their first real test in a while." Privorotsky further emphasized that in a context of fiscal expansion, solid corporate profits, and ample money supply, physical assets remain an important choice for wealth holding. In addition, the U.S. government shutdown and conflicting statements by Federal Reserve officials on the path of rate cuts have also weighed on market sentiment. Risk Warning and Disclaimer The market has risks, investment needs caution. This article does not constitute personal investment advice and does not take into account any individual user's specific investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Investment based on this is at your own risk. ```