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HomeEconomyThe CEO of competition Robinhood is highlighting what retail investors are doing....

The CEO of competition Robinhood is highlighting what retail investors are doing. Wall Street should pay attention.


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Since the start of the COVID-19 pandemic two years ago, a new crowd of retail investors has emerged, pouring extra money into stock markets and taking Wall Street to places they never dreamed of, like Mimi’s stock.

for us Today’s callfrom the founder and CEO of Zingeroo Competitive Stock Trading AppInstitutional traders say they would be wise to continue to pay attention to an increasingly sophisticated retail investor.

Prepandemic, Zoë Barry, president of Zingeroo, notes that the retail crowd represents 10% of the volume that has been traded and hasn’t been involved in trading ideas – often seen in Gen. X and the older crowd. Then that number reached 25%, and with it came a lot of the most talkative investors.

“[Wall Street] Barry completely underestimated what it would be like if 25% of volume shifted in a certain direction and shifted away from institutions,” Barry told MarketWatch in a recent interview.

“… Gen. Z has really started sharpening their pencils and doing research on what to do in a bear market.”

— Zoe Barry, CEO of Zingeroo

“And now Wall Street is full of sentiment data and they are looking at what people are seeing, but they also want the underlying trading numbers because there is a gap between what people are talking about and saying online, versus what they are actually trading,” he said.

As a former analyst at Dawson Capital, Barry said she wanted to know what traders were saying versus what they were trading, and why there are flows into some stocks. “If I were an institution, I would be very wary of shorting stocks that would potentially be the heart of retail investors,” she said.

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The Barry app, launched last fall, is a competitor to Robinhood HOOD,
+ 0.48%And the
But it features ‘bulppens’ – chat groups for discussing investment topics – and ‘zones’, where performance can be measured against others, while trades can be verified via ‘trading cards’.

The Initiative 80% of Zingeroo users said they are Millennials and Generation Z, and the rest are Gen. X plus. The younger crowd, she said, views the business as a so-called “Master of Business Administration” – investing in themselves and their financial diversity.

“I think young retail investors are starting to get a long-term outlook from what you only know, what is happening this week in the markets. I think that is generally positive for them,” she said. They have financial literacy and that’s a positive thing.”

And in the early part of the quarter, there was a lot of talk about young investors getting lost in the wilds of a bear market. “And what we’ve seen is that Gen Z has really started sharpening his pencils and doing research on what to do in a bear market,” Barry said.

As for the differences between generations, she said the Gen. X plus will auto-liquidate with stop losses, Millennials tend to buy the dip, while Gen. Z is more advanced. For example, I noticed the last action on SQQQ SQQQ,
-3.66%And the
A triple inverse trading fund that tracks the NASDAQ 100 index, called this “definitely unusual behavior for a retail investor.”

“They basically said we’re not sure which growing stocks will be affected the most, so I’m not smart enough as a retail investor to pick exactly which stocks are going to pull out,” Barry said. Nor are they concerned about exactly bottoming out the market, but instead look at stocks that they think will stand a higher chance of fundamental success going forward.”

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This crowd, Barry said, “understands the future tools that are happening now,” and they are generally more optimistic about themselves, their future potential and the economy in general, despite the geopolitical meltdown and rising inflation.

Read: AMC, GME and meme stocks are back in the spotlight – how will professional traders handle it this time?


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DJIA stock,

+ 0.28%

+ 1.14%
be mixedCL00 oil prices,
+ 3.90%

See also  Russia controls the Sakhalin gas project and raises risks with the West

+ 3.35%
climbing While investors are considering the possibility of increasing sanctions against Russia. The inversion of the curve remains, with the yield on the two-year note TMUBMUSD02Y,
Above TMUBMUSD10Y for 10 years,
Bitcoin BTCUSD,
Lightens the last run.


One consistent theme is strong returns from the point of a yield curve inversion to the eventual top of the stock market. It is also worth noting that if the rise of 1/4/22 S&P 500 marks the first peak in the stock market before “A reversal in 40 years,” a team of strategists at Evercore said in a note. This is the graph:

Note that Goldman Sachs also focused on this topic in a recent research report, noting that S&P 500 returns were typically positive in the two years following the yield curve inversion, with the exception of the 1973 high-inflation period, when it eventually entered a bear market.

Read: Is an inverted yield curve a harbinger of mortgage rates? Does this really indicate a recession? Economists weigh.


These were the most searched indicators on MarketWatch as of 6AM ET:

random readings

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