2020 Is Turning Into The Year Of The Small Investor

2020 Is Turning Into The Year Of The Small Investor
Andrew Rummer

over 3 years ago1 min

Mentioned in story

  • Smaller investors – also known as “retail” investors – appear to be trouncing the returns of the most sophisticated professionals so far this year.
  • Stocks widely held by smaller traders – tracked by the Goldman Sachs Retail Favorites Index – have climbed much more than hedge funds’ top picks – tracked by the Guru Index exchange-traded fund. (The chart shows the latter divided by the former, so a declining line shows retail outperforming pros).
  • The kinds of high-profile, fast-growing companies so beloved by retail investors lately – like carmaker Tesla and iPhone producer Apple – have surged in 2020. Meanwhile, hedge funds’ more conservative strategies haven’t fared well, reversing the trend observed for most of 2019.
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