Retail investors are sitting on big losses in their stock portfolios even as the market rallies in 2023

• The average retail investor portfolio is down 27% year-to-date, per VandaTrack.
• US stocks have been surprisingly resilient in 2023 despite looming recession fears and bank chaos.
• "Growing recession risks could become a stronger headwind holding retail animal spirits at bay."

Retail investors are sitting on losses in 2023 despite a surprising rally in stocks, with the average individual investor's portfolio down about 27% year-to-date, according to VandaTrack Research. 

Retail investors have pared back their stock purchases as they remain hesitant to dive back into the market after a difficult 2022, when the Nasdaq Composite and the S&P 500 fell 31% and 19.4%, respectively.