Retail Investment Boom, Robinhood, Passive Investing and Market Inelasticity

This week´s blog is unique compared to our previous posts. We have identified two papers that are connected, each with interesting findings and implications. One of today´s leading topics is the Robinhood platform, but not from the point of view of recent short squeezes and speculations. The Robinhood can be an interesting insight into retail investing and implications for the market. Research suggests that despite the very low share of retail investors, their power is significantly high. This seems to be caused by the inelastic market, which passive investing contributes to. Therefore, inelasticity is another crucial point.

https://quantpedia.com/retail-investment-boom-robinhood-passive-investing-and-market-inelasticity/