COVID-19 and Investor Behavior

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 

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