Recent market trends indicate a stark contrast between retail and institutional investors in the U.S. stock market. Retail investors are pouring money into stocks at an unprecedented rate, with flows into technology stocks reportedly more than doubling in recent weeks. In contrast, hedge funds have been selling off technology sector stocks at one of the fastest rates observed in the last five years, marking the third fastest pace of tech stock sales since 2022. Analysts, including Andrew Slimmon from Morgan Stanley Investment Management, warn that this surge in retail investor enthusiasm could signal potential risks for the market. The disparity between the buying behavior of retail investors, often referred to as 'dumb money,' and the selling actions of institutional investors, termed 'smart money,' raises concerns about the sustainability of current market valuations. Additionally, there are warnings that retail investors might face challenges in the coming months as they may need to liquidate positions to cover capital gains taxes due in March and April.