Retail investor Underperformed the Market

Although daily traders and retail investors have encouraged meme shares such as Gamestop (GME) and AMC Entertainment (AMC) to record altitude, data shows that the average retail investor has performed poorly in the market for the past month.

Since mid-February, retail investors have performed badly at the S&P 500 at 11%, according to Vandatrack, a provider of data on the position of positioning and metrics of investor flow. Vandatrack suggested that this could be the reason why fewer people invest a $ 1,400 stimulus examination into shares.

JPMorgan said on Tuesday that the American rescue plan pushed fewer retail activities than the last payment round. Investments are focused on traditional assets such as cash equity, funds traded exchange (ETF), and small hats, versus more speculative areas such as technology and bitcoin stocks, said JPMorgan.

Vandatrack said this followed the same trend as what happened in September after the average retail investor lost almost 14% when the technology shares dropped after the separation of Apple (AAPL) and Tesla (TSLA) shares, the two most popular shares and held widely by stock by many shares by many by many that are held by many and widely held by the wide and wide area widely and widely widely broadly widely investors of all sizes. At that time, the purchase of retail equity continues to decline before taking steps after the US selection, when the purchase is back to the highest of all time.

“The last time retail investors experienced a withdrawal of this size, their appetite to buy risk assets down dramatically in the following months,” Vandatrack said. “We are worried that retail investors might have entered the same healing process, cancel the impact of stimulus examination.”

On March 25, net purchases of U.S. stocks by retail investors equaled $24.65 billion, down from a peak of $29.75 billion on Feb. 5. Regardless, levels are still at all-time highs.

Over the past year, market trading volumes have increased significantly amid the pandemic as retail investors entered the market in swarms and prompted a trading frenzy that drove several stocks higher. Many investors used trading apps like Robinhood as well as utilized message boards like Reddit’s WallStreetBets.

Robinhood reportedly filed confidentially for an initial public offering with the Securities and Exchange Commission (SEC) earlier this week. The company was reportedly valued at $12 billion in Sept. 2020, with that figure rising to about $40 billion in February.

Stocks like Palantir Technologies (PLTR), Nio (NIO), and Walt Disney (DIS) have been losing hype with retail investors, according to SwaggyStocks, which tracks comment volume on WallStreetBets. Meanwhile, more investors have been focusing on GameStop, AMC, and Corsair Gaming (CRSR).

 

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