Retail investors risk turning market correction into recession: BIS

The surging numbers of retail investors in the sharemarket has heightened the risk of a much bigger economic fallout from a correction that threatens financial stability, central bankers have warned.

The Bank of International Settlements – often regarded as the central bank for central banks – has also warned of the risks of highly leveraged hedge funds playing in the bond market along with debt-fuelled spending on artificial intelligence.

Source: https://www.afr.com/markets/equity-markets/retail-investors-risk-turning-market-correction-into-recession-bis-20260629-p60atv