The wisdom of the laity: Retail investors are more influential than most people think
June 20, 2014 Leave a comment
The wisdom of the laity: Retail investors are more influential than most people think
Jun 14th 2014 | From the print edition
“FOLKS are dumb where I come from,” wrote Irving Berlin in the musical “Annie Get Your Gun”. The song’s condescension towards yokels is reminiscent of professional investors’ disdain for their retail counterparts. The “smart money” in New York and London thinks it can make a living exploiting the “dumb money” of people who live in the sticks. Yet a new paper from researchers at the Federal Reserve shows that retail investors—in America, at any rate—are a lot smarter than the professionals imagine. In fact, they have a bigger effect on the markets than the highly paid investment strategists of Wall Street. Read more of this post
Bamboo Innovator 