Where is corona’s money gone?
24 June 2020
Retail Missed the Last Bull Market
Following the repeat market crashes of the dot com bust and the 2008-09 financial crisis, retail investors have fled the stock market for the past ten years.
- Cumulative fund flows in Equity Funds have been declining since 2008.
- Only Millennials are increasingly investing, but their share of wealth is only 3%.
People Received More Money than they Needed
As the Covid-19 crisis struck, State aids to support the workers were exceptional. Although very welcome news for many in dire need, it also provided extra cash to many at a time when spending was reduced by being forced into lockdown mode.
- In 37 states, workers received on average more in unemployment benefits than they would from regular salaries.
- The lockdown brought along the closure of stores, entertainment opportunities, and sport-related activities, including betting.
Flows into Online Trading?
Spikes in Google Trends search item “Stocks” and online brokers' new accounts opening at the moment lockdown was implemented, imply aid money has likely gone to the equity markets.
- The financial impact is likely marginal in the overall scheme of things.
- But it shows how retail investors may regaining interest for the equity markets, and how quickly they opted for Fintech solutions.
.png)
.png)
Disclaimer
This report has been produced by the organizational unit responsible for investment research (Research unit) of atonra Partners and sent to you by the company sales representatives.
As an internationally active company, atonra Partners SA may be subject to a number of provisions in drawing up and distributing its investment research documents. These regulations include the Directives on the Independence of Financial Research issued by the Swiss Bankers Association. Although atonra Partners SA believes that the information provided in this document is based on reliable sources, it cannot assume responsibility for the quality, correctness, timeliness or completeness of the information contained in this report.
The information contained in these publications is exclusively intended for a client base consisting of professionals or qualified investors. It is sent to you by way of information and cannot be divulged to a third party without the prior consent of atonra Partners. While all reasonable effort has been made to ensure that the information contained is not untrue or misleading at the time of publication, no representation is made as to its accuracy or completeness and it should not be relied upon as such.
Past performance is not indicative or a guarantee of future results. Investment losses may occur, and investors could lose some or all of their investment. Any indices cited herein are provided only as examples of general market performance and no index is directly comparable to the past or future performance of the Certificate.
It should not be assumed that the Certificate will invest in any specific securities that comprise any index, nor should it be understood to mean that there is a correlation between the Certificate’s returns and any index returns.
Any material provided to you is intended only for discussion purposes and is not intended as an offer or solicitation with respect to the purchase or sale of any security and should not be relied upon by you in evaluating the merits of investing inany securities.
Back to research
