A lot of the time, when you see shortsighted stock movements, like the heating company CORONA taking an excessive hit in price when Covid came around, or "meme" stocks, there's a certain lamenting by serious investors about how uninformed people are manipulating the stock market away from true valuations. The image I get is one of someone who doesn't follow the news, just taking hints from Jerry at work who's saying "Buy X, it's a guaranteed winner, I hear it's gonna go up!"
Yet, also, there's frequent comments in the literature and community about how retail investors don't have trading volume high enough to even make a dent in the market, and all movements you see are professional hedge funds and pension funds and HFT and so on.
These ideas seem to directly contradict. Do retail investors on Robinhood have an effect on the market? Or do professional traders holding funds of millions and billions of dollars sometimes make trades that are foolish? Or do the professionals make trades that the online investor community doesn't understand and they get painted as retail-investor style foolishness?
Submitted May 09, 2022 at 10:45PM by Mother_Welder_5272 https://ift.tt/WtwQ0dZ
