Robinhood Traders are Not Behind the Market Rally
Brokers such as Robinhood have become increasingly popular with retail investors.
Many people are asking if the recent surge in the stock market can be attributed to the rise of retail investors. Market researchers have concluded that there is no correlation between Robinhood customers and the performance of the S&P 500.
A recent Barclays' analysis revealed that while some retail investors are cashing in, many others are getting the market all wrong and losing money. Bullish Robinhood investors had been on a hot streak, only to experience significant pullback in recent days. Traders were favoring companies who had been hit the most by the pandemic. Travel companies were among some of the fan favorites. These stocks were down hard after the sell-off, which took place over the last few days.
At Covenant Wealth Strategies, we encourage our clients to remain focused on their long-term goals and objectives. Funds that may be needed within 6-12 months should be kept easily accessible and in a low risk account such as a high interest money market account.
If you have questions about your investment strategies or have financial planning needs, please contact our team at contactus@covenantwealthstrategies.com or call us at 302.234.5655 to set up a mutually convenient date/time to speak.
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