There has recently been a trending story amongst traders that Robinhood investors are the reason the markets have rebounded so quickly; FT Alphaville takes a look at two recent notes by Barclays and Soc Gen that cast some doubt on that being the case; Barclays found that the more popular a stock has become on the Robinhood app, the less positive its returns have been; Barclays came to the conclusion while more day traders are in the market they are not systematically pushing up stock prices; Soc Gen found Robinhood investors appear to be buying both high quality and lower quality stocks; there are a multitude of reasons why the markets have gone higher, as the FT points out when they highlight a note from Bloomberg’s Joe Weisenthal; “The first is that the real economy has improved A LOT since late March. This makes people uncomfortable, because the economy is objectively still so awful and there are still so many risks out there.” FT Alphaville.
Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.