The chip sector looks like it’s seeing a round of “vicious” profit-taking, David Rosenberg, a top economist and the founder of Rosenberg Research, wrote to clients on Tuesday.
It’s unclear if retail investors will step in to buy the dip in stocks, he said, pointing to how US households already have historically high exposure to equities.
“The question now is whether the U.S. retail investor, filled with FOMO feelings, will emerge, yet again, as dip buyers. A legitimate question, seeing as mutual inflows have surged this past month, and at a time when equities comprise a record-high 73% share of the household sector’s financial asset mix,” Rosenberg wrote.