The Robinhooders are right!

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Cross-posted from FTAlphaville:

If you had managed to avoid reading the financial press for the past few weeks, and then decided to catch-up on today, you might notice a new phrase being banded about in market commentary. Namely, “Robinhood investors”.

Shorthand for retail punters utilising commission-free brokerage platforms (such as Robinhood) to buy stocks, a decent amount of the downright euphoric market action since mid-May, particularly in struggling single-name stocks, has been attributed to this great unwashed mass of day-traders. Including, we should add, on this blog.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.