On February 21st, Scott Rubner, Global Markets Managing Director and Tactical Expert at Goldman Sachs, stated that as retail and institutional buyers lose momentum, the US stock market may enter a correction zone. The cash flow dynamics began to undergo a dramatic change on Monday, and I am currently monitoring the correction, “Rubner wrote in a report to clients on Thursday. Despite the uncertainty surrounding tariffs and the path of Federal Reserve interest rates, the US stock market still hit a record high on Wednesday. The strong rise is due to the resilience of corporate profits and the strong inflow of retail and institutional investors. However, Rubner wrote that these dynamics may change starting from Monday. For retail investors who are flocking to the US stock market at a record pace this year, their demand is expected to slow down before the March tax season. The flow of funds from pension funds may also ‘lose momentum’, which Rubner attributed to seasonal trends. January and February are usually the months with the strongest annual asset allocation, and by March, capital inflows weaken.
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