Being a Small Investor Might Not Be Bad

Typically the individual investor who buys low and sells high is considered the one Wall Street and professional day traders make their profits off of. But new research is changing the small investor narrative.

In a working paper, UCLA Anderson’s Ivo Welch says that during the three years until August 2020, stocks owned by customers of the popular mobile trading app Robinhood have outperformed the broad market. Activity has increased significantly since the onset of the pandemic. Welch insists that retail investors aren’t investing patsies and being a small investor might not be so bad.