Well written! Have a few questions. If regular main st investors were listening to the media & “experts” like IMF, then they probably pulled their money out of stock market. Then who was buying? The “smart” money? Did the market move up with lower than average volume? Thanks!
Yes, most likely the buyers were what is called "smart money". The retail investor sentiment was very negative. E.g. the American Association of Individual Investors (AAII) has a sentiment survey that plummeted in march-april last year, particularly right after the depression forecasts from the IMF began making the news. I think the trading volume during the market recovery was normal, though much less than the selling volume in March. Obviously not everybody got back in and if I had to guess, retail investors may have locked in losses.
Well written! Have a few questions. If regular main st investors were listening to the media & “experts” like IMF, then they probably pulled their money out of stock market. Then who was buying? The “smart” money? Did the market move up with lower than average volume? Thanks!
Yes, most likely the buyers were what is called "smart money". The retail investor sentiment was very negative. E.g. the American Association of Individual Investors (AAII) has a sentiment survey that plummeted in march-april last year, particularly right after the depression forecasts from the IMF began making the news. I think the trading volume during the market recovery was normal, though much less than the selling volume in March. Obviously not everybody got back in and if I had to guess, retail investors may have locked in losses.