Retail Investors Sell Almost All Stocks Bought During Pandemic

Retail Investors Sell Almost All Stocks Bought During Pandemic

We talk incessantly (and often derisively) about "the retail investor." We're never very precise about who we mean. Part of the problem is that investors come in all shapes and sizes, and hail from diverse backgrounds such that neat classification is impossible. Some readers are familiar with Kevin Muir, of The Macro Tourist fame. Is he a "retail investor"? Well, it depends on who you're comparing him to. If the bar is Dan Loeb, then yes, Kevin is a retail investor. If the bar is Reddit-inspire
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8 thoughts on “Retail Investors Sell Almost All Stocks Bought During Pandemic

  1. Apparently, hedge funds, institutional managers and individual investors have all been selling. Assuming these stocks weren’t left in a shoebox at the fire station, who’s been buying?

    1. Bingo! Some smart people bought every dollar of what was sold and they will make out. What people don’t seem to get when they sell is the idea that every day all the assets you own have a value that equals the present value of all the returns that asset will produce from this day forward. The past is irrelevant. Unless one has a choice that will produce a risk-adjusted return that is superior using the net proceeds of the sale, one should not sell. The buyers who have been buying up all this stuff, we must assume, think they can get a better risk-adjusted return in the future on the stuff they just bought from all those sellers than they could get from any other alternatives. In many cases that means a whole lot of those sellers probably blew it, especially if they kept the cash. Every day each us has a choice to make, keep what we have or sell. Unless something else is better than what we have, selling is fruitless.

  2. I’ve learned, the hard way, to listen to people who have more subject-matter knowledge than I do. While the Heisenberg Report author won’t tell you what to do or how to invest, he does lay the ground work for you to make sound decisions with your money. I’m willing to miss an opportunity or two to make additional money if the anxiety it creates impacts my serenity. I’m 60% cash 35% oil and gas, and 5% miscellaneous. I’m up almost 10% YTD in my portfolio. I’m not that smart. I’m lucky and I listen. Thanks, Mr. Heisenberg.

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