Robinhood traders are not behind the market's recent rally, Barclays says
Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.Since recent market lows in March amid the coronavirus meltdown, retail traders have been jumping into stocks via zero-fee brokers such as Robinhood, fueling a popular narrative that new retail investors are driving the stock market's recent rally.
In addition, Barclays found that there is actually a negative relationship between Robinhood ownership and stock price performance.Retail investors using the popular trading app Robinhood have not driven the market's recent rally, and in fact, their top stock picks have had lower returns, according to a recent analysis by Barclays.
The analysis found that in aggregate, there is no clear relationship between Robinhood customers adding shares and S&P 500 index performance, according to the Friday note. via zero-fee brokers such as Robinhood, Charles Schwab, and TD Ameritrade. That's fueled a popular narrative that new retail investors are driving the stock market's recent rally.
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