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The Wisdom of the Robinhood Crowd

NBER Working Paper Series, 2020-09

Copyright National Bureau of Economic Research, Inc. Sep 2020 ;ISSN: 0898-2937 ;DOI: 10.3386/w27866

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  • Title:
    The Wisdom of the Robinhood Crowd
  • Author: Welch, Ivo
  • Subjects: Asset Pricing ; Households ; Investments ; Marijuana ; Securities markets ; Stock exchanges ; Stocks
  • Is Part Of: NBER Working Paper Series, 2020-09
  • Description: Robinhood (RH) investors collectively increased their holdings in the March 2020 COVID bear market, indicating an absence of panic and margin calls. Their steadfastness was rewarded in the subsequent bull market. Despite unusual interest in some “experience” stocks, their aggregated consensus portfolio (likely mimicking the household-equal-weighted portfolio) primarily tilted towards stocks with high past share volume and dollar-trading volume. These were mostly big stocks. Both their timing and their consensus portfolio performed well from mid-2018 to mid-2020.
  • Publisher: Cambridge: National Bureau of Economic Research
  • Language: English
  • Identifier: ISSN: 0898-2937
    DOI: 10.3386/w27866
  • Source: Alma/SFX Local Collection
    ProQuest Central

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