Retail investors' favorites typically underperform so watch out for these stocks, Goldman says

Goldman Sachs found that stocks with the highest individual investor activity have underperformed over the following two weeks after that burst of interest.

"This suggests individual investors may have tried to 'buy-the-dip' in individual names, but the stocks have not immediately outperformed," Goldman Sachs analyst John Marshall told clients.Investors might want to steer clear of the favorite stocks of rookie investors dabbling in the market, according to Goldman Sachs.

The Wall Street firm examined the favorite stocks of small investors and how they perform, finding stocks with the highest individual investor activity have underperformed over the following two weeks. "This suggests individual investors may have tried to 'buy-the-dip' in individual names, but the stocks have not immediately outperformed," Goldman Sachs analyst John Marshall told clients.

Retail investors flooded into the market during the first half of 2020 as stocks experience the fastest bear market in history. The major online brokers —

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Aurora James Is Calling On the Retail Industry to Take the 15 Percent PledgeThe founder of Brother Vellies asked major store chains to take the 15 Percent Pledge, which is to devote a portion of their buy to Black-owned businesses.
Source: ELLE Magazine (US) - 🏆 472. / 51 Read more »

Here's how small-business owners can adapt to the new retail landscape - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »