The Wisdom of the Robinhood Crowd
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.
The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.
IVO WELCH, 2022. "The Wisdom of the Robinhood Crowd," The Journal of Finance, vol 77(3), pages 1489-1527. citation courtesy of