American retail investors began to actively buy dips

U.S. retail investors are hunting for dips, hitting record highs at one point.

Bank of America said retail and hedge fund clients were the leading buyers during last week's sharp market correction, while other institutional clients sold the most since the new year, with net outflows the most in nearly a year.

January was the strongest month on record for average U.S. bank customer inflows into U.S. stocks, with net buying seen in 10 of the past 14 years.

JPMorgan Chase also revealed that retail investors bought $1.07 billion on Tuesday, the third day in a row that they bought more than $1 billion. During last week's rout, retail investors made a record $1.6 billion in net purchases on so-called Black Friday.

Notably, as Goldman Sachs recently observed, retail investors are typically aggressive buyers in January, while other groups are sellers.