It has so much potential. So far. Sure, they are inexperienced, but they work on the theory that stocks only go up, and if it’s a terrible stock that just fell 50%, then that’s even better. I don’t think a V-shaped recovery is likely, or a depression, and we are likely just to muddle through.”. Robinhood makes money by selling data to high-frequency traders, which may translate into other activity by large players. If our base-case assumptions are true the market price will converge on our fair value estimate over time, generally within three years. Change the date range, see whether others are buying or selling, read news, get earnings results, and compare iStar against related stocks … Barclays reported no relationship between the aggregate holdings of stocks by Robinhood traders and the returns on those stocks. These new Robinhood traders are having a ‘bro down’ party in the rising market, as satirised in the following variation from an episode of South Park. A former Goldman Sachs Partner, Joseph Mauro, reported that his 10-year-old son can no longer play the hit game Fortnite during the day because his friends are on Robinhood: Hedge fund manager and writer of the well-known Felder Report, Jesse Felder, tweeted: Here are some extracts from the Robinhood user pages on Reddit as new players reach out for advice, such as: Even when there is a market sell-off, we see claims that Robinhood traders caused it (although this comment is probably ironic): Their spiritual leader, Dave PortnoyDave Portnoy is the founder of a successful sports betting business called Barstool Sports. CIBC’s Amber Sinha is watching the impact of COVID-19, Brexit, and the U.S. Election volatility o... A discussion of taxes, stimulus, regulation, and the likely market reaction as we get results. Douglass has increased his cash holding from 6% to 17% during the pandemic, and his former partner and now Portfolio Manager at MFF Capital Investment (MFF) in Australia, Chris Mackay, was holding cash at 46% of his portfolio at the end of May. Investments in securities are subject to market and other risks. Anyone ruling him out for another term hasn’t seen Joe Biden without a teleprompter. All of which suggests that the rapid rise in the market was at least influenced by another player and perhaps less-experienced retail investors were not the bunnies this time. Call it Robinhood traders, the corona generation, YOLO (You Only Live Once), TINA (There is No Alternative) or simply retail investors, but trading by individuals has hit global equity markets in massive numbers. In the US, financial market commentary hotly debates the new impact of retail investors. And when the two eventually meet, a new wave of investors learns some very old lessons: First, many in Wall Street—a community in which quality control is not prized—will sell investors anything they will buy. Some daily moves are called a battle between the smart professional sellers and the dumb retail buyers, but since the 23 March bottom, the dumb money has been right. Given Mr Portnoy is a gambler, let's finish with the words from the Kenny Rogers song: You've got to know when to hold 'emKnow when to fold 'emKnow when to walk awayAnd know when to runYou never count your moneyWhen you're sittin' at the tableThere'll be time enough for countin'When the dealin's done, Learn what to expect from your equity management here, Just because you can doesn't mean you should. He’s a big-time influencer. It's more likely the new traders are simply following a rising trend and doing well from it.How will it end?Anyone who has spent more than five minutes in stock markets thinks this will end badly, especially when leverage is involved. A collection of retail buyers or sellers following the recommendation of an influencer could move the prices of some stocks significantly. A popular Reddit Australian site is ASX_bets with about 8,300 members. Although it’s possible to make money in a falling market (say, using bear ETFs or put options) most new players are using a few thousand dollars and going long favoured stocks. This process culminates in a single-point star rating that is updated daily. He tells how he is "just printing money", and "With the volatility, it is kind of like watching a sports game.". It is a projection/opinion and not a statement of fact. It's newbies versus fundies. A leading US financial industry newsletter, SA Macro View Daily, in which articles are written by fund managers and other experts, led its Friday edition last week with these three warnings: In a Firstlinks survey in late April 2020, two-thirds of responses said a new low is coming. It sounds crazy to anyone taught to value a company based on the net present value of its expected future cash flows, but in this world, none of that matters. The company was founded by Jay Sugarman in 1993 and is headquartered in New York, NY. It’s also dominated by young people and millennials, and Robinhood advertises heavily to this market. The Rehabilitation and Wellness segment offers physical, occupational, speech, and other specialized therapy services, in the inpatient setting and in outpatient clinics. You can buy or sell iStar and other stocks, options, and ETFs commission-free! Dave Portnoy’s estimated worth is over US$100 million after selling his sports betting business, so it won’t worry him to drop the odd million. Past performance of a security may or may not be sustained in future and is no indication of future performance. 'Bro down' is a meeting of people, usually males, with some common bond, in this case, ramping up stories on social media of which stocks to buy and then boasting about it. Change the date range, see whether others are buying or selling, read news, get earnings results, and compare Five Star Senior Living against related stocks … Unless you follow the right people on Robinhood, Reddit, Twitter and TikTok, it’s hard to know what’s happening. It's called 'the most-hated rally' because many people have underestimated it. Portnoy’s techniques feed directly into the needs of his audience for instant success, big ideas and brashness, with strategies that make professionals wince. 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