Retail investors demonstrated strong conviction on April 3, the first full trading day following President Trump’s so-called ‘Liberation Day’ and the announcement of new U.S. tariffs. Instead of panic-selling, many chose to buy the dip, seeing the sharp sell-off as an overreaction to macroeconomic developments, according to Lale Akoner, Market Analyst at eToro.
“Many saw it as a buying opportunity in quality names like Nvidia, Amazon, and Nike, which have strong fundamentals but were dragged down in the broad risk-off move,” said Akoner. “Nike, for example, plunged due to tariff concerns on imports from Southeast Asia, but long-term bulls likely saw its brand strength and market dominance as worth holding through short-term supply chain pressures.”
eToro data reveals that on April 3:
- More long positions were opened than closed, indicating a buy-the-dip mentality among retail investors.
- The number of global long positions opened surged 51% above the daily average for March.
- Nike emerged as a top buy-the-dip stock, with its share price tumbling 14% due to heavy tariffs on Southeast Asian imports, where the brand manufactures much of its footwear.
Investor Confidence Extends to AI and Crypto
The dip-buying trend extended beyond retail stocks. Despite recent volatility driven by tariffs and inflation concerns, AI and crypto assets also saw increased interest:
- Nvidia saw a 21% rise in global holders on eToro in Q1 2025 compared to Q4 2024.
- TSMC followed with a 17% increase in holders.
- In crypto, Solana saw a 17% rise in holders, while Bitcoin and XRP each rose by 5%.
“In crypto, SOL, BTC, and XRP saw strong Q1 flows on eToro as investors anticipated greater adoption and regulatory clarity—especially for XRP following recent SEC developments. Many also viewed these assets as hedges against dollar weakness and ongoing geopolitical risks,” added Akoner.
Conviction in Chaos
The data underscores a larger narrative: retail investors are becoming increasingly sophisticated, using macro-driven sell-offs as entry points into fundamentally strong assets.
“In short, retail investors bought in because they believed the assets were fundamentally strong, the drop was temporary, and opportunity often lies in chaos,” Akoner concluded.
