Just about everything in our lives is different, no thanks to the novel coronavirus.
One glaring difference is how retail investors have plunged into the stock market since COVID-19 slammed markets and shutdown the country.
While that’s different enough, what’s vastly different is retail investors, instead of typically selling at the bottom of a plunge, started buying early, have been buyers all the way up, and according to Goldman Sachs research, with their whacky list of favorite stocks have beaten hedge funds and their top holdings.
Since a ZeroHedge article earlier this week pointed out, “After years of trying and failing to sucker in retail investors into the stock market to allow a long-overdue distribution from top shareholders to mom and pop bagholders, as has been the trend heading into every prior recession…” maybe it’s time to ask, with stocks racing higher heading into another recession, is the new retail trend dangerous?
The answer is “no,” it’s not dangerous, at least not yet. But, “yet” could be any day now.