How do retail inves­tors respond to the out­break of COVID-19? We use tran­sac­tion-level tra­ding data to show that inves­tors signi­fi­cant­ly increase their tra­ding acti­vi­ties as the COVID-19 pan­de­mic unfolds, both at the exten­si­ve and at the inten­si­ve mar­gin. The avera­ge weekly tra­ding inten­si­ty increa­ses by 13.9% as the num­ber of COVID-19 cases dou­bles. The increase in tra­ding is espe­ci­al­ly pro­no­un­ced for male and older inves­tors, and affects stock and index tra­ding. Fol­lo­wing the 9.99%-drop of the Dow Jones Indus­tri­al Avera­ge on March 12, inves­tors signi­fi­cant­ly redu­ce the usa­ge of levera­ge across all asset classes.

Quel­le /​ Link: Covid-19 and Inves­tor Behavior

Wei­te­re Informationen:

COVID-19 und Han­dels­ak­ti­vi­tä­ten von Pri­vat­in­ves­to­ren. Stu­die der Uni­ver­si­tät Pader­born attes­tiert Anstieg