The crowd bought the dip and right now they’re looking pretty smart! Has the Oracle of Omaha lost his Midas touch? The May 2025 Elliott Wave Theorist weighs in:
Investors globally poured a record amount of money — in fact, triple that of previous spikes — into leveraged-long ETFs in one week in April. Retail investors bought individual stocks at a record pace in the month of April. It is not only the amounts of buying that are setting records. So is the duration of optimism. According to a Bloomberg article from May 10, “At Bank of America Corp., individual-investor clients bought shares for 21 straight weeks through May 2, the longest buying streak in the firm’s data history going back to 2008.” See chart below:
One famous investor is going the opposite route of institutions, corporations and the public. Warren Buffett has been raising cash at an unprecedented rate, as shown in the chart below. His cash hoard is so big, he could buy up all shares of 476 companies in the S&P 500 at present prices. Is he stupid, or is everyone else?
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