The pandemic, while awful for millions who have lost their jobs, has been “surprisingly good” for stock investors. This according to a recent article in Yahoo Finance.

The article reports that retail investors seemed to pile into stocks as “pandemic fears reached fever pitch” and “no one else wanted to touch them.” And data from Deutsche Bank reflects that as of July, retail investors have continued to “ramp up exposure.”

“There are a lot of ways to read this,” the article notes, suggesting that professional investors may be missing the boat while retail investors heed Warren Buffett’s advice to “be greedy when others are fearful.” But the article notes that although retail investors seem to have “won the rally so far,” it is still unclear what the outcome will be.

According to Jeffries global equity strategist Sean Darby, the retail investor “craze” has involved “a lot of momentum trading and people deciding to buy what they know,” including mega stocks like Amazon, and this could mean that their gains outpace those of the broader market. Darby said, “It needs to be remembered that they might have done even better than the index given that a handful of stocks have made very impressive gains.”

The article reports that retail investors seemed to pile into stocks as “pandemic fears reached fever pitch” and “no one else wanted to touch them.” And data from Deutsche Bank reflects that as of July, retail investors have continued to “ramp up exposure.”

“There are a lot of ways to read this,” the article notes, suggesting that professional investors may be missing the boat while retail investors heed Warren Buffett’s advice to “be greedy when others are fearful.” But the article notes that although retail investors seem to have “won the rally so far,” it is still unclear what the outcome will be.

According to Jeffries global equity strategist Sean Darby, the retail investor “craze” has involved “a lot of momentum trading and people deciding to buy what they know,” including mega stocks like Amazon, and this could mean that their gains outpace those of the broader market. Darby said, “It needs to be remembered that they might have done even better than the index given that a handful of stocks have made very impressive gains.”