Retail Investing Boom May Spark Concerns, But Strategist Says Markets Have Lived Through It Before
Sep 10, 2020
Retail investors have been fueling a frenzied buying boom in markets this year, sparking fears that they are driving too much speculation in the market. But Christopher Smart, chief global strategist at Barings Investment Institute, suggested that the risks could be overblown. “It’s something we’ve lived with — through the dotcom bubble and market ups and downs since then — as retail investors, obviously when there’s a big run-up, it tends to draw retail investors in, late in that process,” he said. “I think the one piece of good news today is it seems like, in spite of the sell-off, volatility seems to be more muted today, which suggests that the market is beginning to find a floor,” Smart added. Read more at CNBC.
