Robinhood Narrative Not Quite What is Seems

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.

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