Kaidi Meng

“This reduction in long exposure may be a function of broader profit-taking after years of successful buy-the-dip strategies, or this could be a sign of retail investors choosing to take increased risk via more speculative stocks, levered ETFs, and betting sites,”

Kaidi Meng · said date not stated · reported 2026-08-19

Meng offered possible explanations for reduced long exposure among retail investors.

“Flows into ETFs signal a trend of reduced outright exposure, rather than just an uptick in downside hedges,”

Kaidi Meng · said date not stated · reported 2026-08-19

Meng discussed what ETF flow trends signal about investor exposure.

“Previously, retail bought any major dips almost without question. However, this year, we are seeing a more selective retail investor that is either switching between stocks quickly or buying underlying stocks while also buying protective puts,”

Kaidi Meng · said date not stated · reported 2026-08-19

Meng contrasted current retail behavior with past dip-buying patterns.

“Retail investors are selectively trading in the classic AI theme but also adding downside protection via options and inverse ETFs,”

Kaidi Meng · said date not stated · reported 2026-08-19

Meng described how retail investors are trading AI stocks while hedging with options and inverse ETFs.