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.
