Retail investors are not nervous about equity levels, says WSJ's Gunjan Banerji

Market Trends - The current market shows a rebound across the board, with volatility increasing over the past month [1] - The S&P 500 has rebounded approximately 2% after significant one-day drops, marking the best year for the "buy the dip" strategy since 2019 and the second best since the 1980s [2] Retail Investor Behavior - Retail investors are actively participating in the market, with many buying the dip, indicating a lack of nervousness among them [2][3] - A notable increase in market participation is observed among younger investors, with about one-third of 25-year-olds currently invested, up from 6% in 2015 [4] Income Level Participation - Investors from various income levels, particularly those earning between $30,000 and $80,000, are increasingly entering the market, contributing to the current bull market [6] Leverage and Volatility - The use of leveraged trading, particularly in crypto markets, is prevalent, with some traders utilizing up to 100x leverage, which can lead to significant gains or losses [9][11] - The volatility in the stock market may be exacerbated by leveraged trades, as traders often rebalance positions around market close, contributing to extreme price movements [12] Global Market Dynamics - The trading activity is not limited to the U.S., with significant participation from international investors, particularly in leveraged crypto trades, which account for a substantial portion of Bitcoin volumes [13]