Retail traders leave Wall Street for dust in 2020 stocks rally

LONDON: Retail traders have ridden 2020’s stock market rally better than the professionals, with their most popular picks outperforming market indexes and well-resourced investors such as hedge funds.

Online trading platforms have reported a retail rush since the COVID-19 pandemic hit markets in March, with near-zero interest rates and a roaring rebound luring a new generation of stuck-at-home traders wanting to sharpen their skills on stocks.

And while the scramble into fast-growing but highly-valued stocks has echoes of the 2000 dotcom bubble, plentiful cheap cash means retail traders do not yet look ready to cash in.