Retail Investors Back Away
Bloomberg Businessweek US|December 12, 2022
Day traders have run out of ammo as inflation and interestrate hikes crimp their tactics
Paula Dwyer
Retail Investors Back Away

He could stomach the plunge in global equity markets that devalued his stock investments. He was still willing to stick it out when the money he'd moved into crypto coins with names such as SushiSwap and Avalanche halved in value. But the collapse of FTX Group, where all his remaining savings sit in a locked trading account, was too much for Joseph Pizzoferrato. "Losing $10,000 is crushing me," says Pizzoferrato, who works for a life insurance company in Nevada and began day trading in 2020 while stuck at home during lockdown. "If I do ever go back into crypto, it's going to be just extra money but not anything involving life savings." Pizzoferrato, 33, is fairly typical of the cohort of retail traders who roiled the markets when they took up investing en masse in the Covid-19 pandemic's first two years. The freeze on student loan payments and an historic bull market were on their side. Now, the so-called dumb-money crowd that was beginning to look like a permanent fixture of the financial world seems to have disappeared as quickly as it arrived.

The data show the extent of the rout: Retail traders' returns are down about 40% in 2022, according to JPMorgan Chase & Co. Since the start of 2021, the share of such investors in US equity market volumes has plunged by 40%, according to the bank. Stocks that were once buoyed by the retail crowd are now vastly underperforming the market.

High-flying technology stocks have especially fallen out of favor, as seen in the performance of the ARK Innovation exchange-traded fund, a pandemic darling that's down 63% this year. The buy-the-dip strategy that many small-fry investors use is heading for its worst year in decades, as shown in the negative returns of those who bought shares after down sessions. And according to one measure by market researcher SentimenTrader, confidence among retail investors is hovering near early pandemic lows.

この記事は Bloomberg Businessweek US の December 12, 2022 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Bloomberg Businessweek US の December 12, 2022 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

BLOOMBERG BUSINESSWEEK USのその他の記事すべて表示
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 分  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 分  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 分  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 分  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ 分  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ 分  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 分  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 分  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 分  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 分  |
March 20 - 27, 2023