The Wisdom of the Robinhood Crowd

Ivo Welch

No 27866, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: D9 G11 G4 (search for similar items in EconPapers)
Date: 2020-09
Note: AP
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Published as IVO WELCH, 2022. "The Wisdom of the Robinhood Crowd," The Journal of Finance, vol 77(3), pages 1489-1527.

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