US stock markets roared back to life at the end of 2023. Both the S&P 500 and the Dow Jones Industrial Average are up 16 per cent since late October, hitting new records last week. The tech-heavy Nasdaq Composite, which is particularly vulnerable to a rapid rise in borrowing costs, is only 5 per cent away from its all-time high.

Optimism that the Federal Reserve is done raising interest rates is fuelling the gains. Yet not everyone is rushing in. For many retail investors, cash is still king.

Net purchases of US equities by individuals totalled $11.7bn in the 10 trading sessions to January 16, according to data from consultancy Vanda Research. That compares with a peak of $17bn in the comparable period last February when the S&P 500 was 18 per cent lower.