The articles provide insights into retail investing trends in 2020, especially among individual and young investors. Key trends include a surge in new retail investors, increased interest in fractional share investing, more investments in tech stocks and bitcoin, the rise of mobile and online trading platforms. These indicate a growing appetite for investments among retail investors. However, there are also risks like market volatility and potential overheating. Overall, retail investing seems to be on an accelerating growth trajectory supported by technology advancements and shifts in consumer preferences.
Surge of new retail investors entering the market
The articles cite statistics and survey data indicating a major spike in retail investing activity in 2020. For example, 10 million new brokerage accounts were opened in the first half of 2020 alone. The COVID-19 pandemic and lockdowns seem to have triggered higher engagement from individual investors with extra time on their hands. There also appears to be increased enthusiasm among millennials and Gen Z to invest in stocks.
Rising popularity of fractional share investing
The emergence of fractional share investing platforms seems to be making retail investing more accessible to individuals by lowering capital requirements. These platforms allow investors to purchase fractions of shares in dollars rather than whole shares. This allows even small investors to gain exposure to high-priced stocks.
Increased investment in tech stocks
Survey data cited indicates significant investor interest in big tech stocks like Apple, Amazon, Microsoft and Google in 2020. Retail investors seem attracted to these stocks due to high visibility, growth outlook, and past returns. However, tech stocks can carry higher risk due to volatility.
Growing trader interest in bitcoin
There are indications of rapidly growing interest and activity among individual traders and investors in bitcoin and cryptocurrencies. This seems to be driven by bitcoin’s reputation as an alternative asset class and massive price surge in 2020. However, typically high volatility means crypto investing remains risky.
In 2020 and beyond, expect ongoing evolution in how people invest as technology opens new opportunities. But economic shifts could also create pitfalls for unwary retail investors. Treading carefully, being informed, and diversifying will be key to navigating this emerging landscape.