Are Retail Traders Running out of Steam?
At the start of the COVID lockdown last year, we saw a massive influx of consumers talking about investing, learning to trade, and trading stocks.
The uptick in mention volume preceded reports showing that retail investors greatly increasing their % of the overall market trades in 2020.
In 2021, we saw another huge spike in retail trading chatter, coinciding with the GameStop (GME) stock event…
Now, Mention volume is cooling off.
On a 30-day moving average, consumer mentions of trading stocks and the stock market have fallen well below the previous Covid-induced highs, currently -67% YoY.
So are the new retail traders giving up the ghost? Not likely.
Compared with the volume seen in 2019, chatter is still up +59% on the 30-day moving average.
We’ll need to see a much larger decline before we can say the market landscape has returned to pre-pandemic normalcy.