Since then, that flow has slowed to roughly $100 million on a 10-DMA through May.Īnd while the arrival of ChatGPT may be seen as a transformative, black swan event, the AI trend is still relatively small compared with the meme-stock trading phenomenon, Vanda added. 'We are heading into a very frightening time in the entire real-estate. Net retail flow into the buzzy pocket of the equity market reached roughly $250 million on a 10-day moving average late last year as news mentions of AI ramped up. A real-estate billionaire who made a fortune shorting the mid-2000s housing bubble is bracing for another painful downturn. retail flows into AI-linked stocks and ETF shows that individual traders are thinking twice before jumping into some of these names.' 'The craze seems to have only sparked a marginal increase in retail buys, at least for now,' Marco Iachini, Vanda's senior vice president of research, said in the note. Vanda, which monitors activity among nonprofessional investors, looked at media mentions about AI since October alongside net purchases of AI-sensitive stocks by individual investors. But that hasn't spilled over to the retail side.

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