The New Force on Wall Street.
It’s not hedge funds, it’s not program traders or AI-powered portfolio managers. It’s 16-35-year-old girls or boys, who have no idea what a company does that they’re flipping – nor do they care.
Nor do they need to. 🙂
Management: Meet your new shareholder. They’re not buying your stock, they’re renting it. A recent Harris poll says 78% of Millennials would rather spend money on an experience or an event over buying something- and that includes stocks. Quite possibly yours!
As long as this new breed of trader remembers to sell, as fast as they buy, they are a force to maneuver around for the foreseeable future. Prepare for a wonderful new world of volatility!
In December 2019 Robinhood (valued at $8 billion) hit the 10 million accounts milestone, up from its one million subscribers in 2016 and six million accounts in 2018. They added 3 million more in the first quarter of 2020. Robinhood users trade nine times as many shares as E-Trade customers, and 40 times as many shares as Charles Schwab customers. Boo ya.
THE KEY IS PATIENCE, PATIENCE.