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Private investors will run the stock market for many years to come – Tom Lee
Retail investors create a stir in the stock market
The cryptocurrency market is a clear confirmation of the strong influence of retail investors
Private traders will keep the dynamics on the stock market for some time, according to Fundstrat
Retail investors have entered the traditional financial market and will remain the main driving force there for several more years, according to co-founder of Fundstrat Global Advisors.
Fundstrat Global Advisors co-founder Tom Lee drew parallels with the hype around stocks and the dynamics of the cryptocurrency market. The expert believes that the segment of traditional financial assets is now experiencing an invasion of private investors, repeating the experience of the cryptocurrency market during the 2017 boom.
According to Lee, retail investors, retail investors will not leave the traditional financial sector for several years. He stated this in an interview with CNBC, commenting on the recent pump of GameStop shares..
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The head of Fundstrat says that private investors will continue to invest in the traditional stock market for a while.
“Retail Investors Have a Huge Impact.
Of course, I think this will lead to inefficiency, but other investors can take advantage of this, ”said Lee..
At the same time, retail investors will ignore company fundamentals, which, according to Lee, cannot be considered a flawed investment strategy..
Investors rule the show
Lee cited the bitcoin market as an example of the influence of retail investors. The head of Fundstrat claims that if institutions were ahead of retail investors, they could buy the entire stock of bitcoin in 2016 for 1/100 of its price..
“Bitcoin is a great example of how non-professional investors open the market for themselves..
Now that’s proven, and what are we seeing this year? Institutionals make money from it by buying in huge quantities, ”added Lee..
Li believes retail investors have enough cash to change market dynamics.
We will remind, earlier the users of Reddit decided to “for fun” inflate the shares of the retail network for the sale of game consoles and games GameStop.
As a result of the pump, GameStop shares have jumped 750% since the beginning of the year. GameStop capitalization at the same time grew to a historic high of $ 10.3 billion.
However, the temporary outflow of private investors does not mean that the Bitcoin rally is over. This year will be for the most part reminiscent of the 2017 rally, when Bitcoin experienced hyperbolic growth.
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