Robinhood Investors: Buy This, Not That
There's no question that investing in 2020 has been an adventure. In roughly a six-month stretch, the benchmark S&P 500 lost more than a third of its value to investor panic and uncertainty surrounding the coronavirus disease 2019 (COVID-19) pandemic -- only to completely rebound.
Tenured investors didn't overreact to this wild period. That's because every correction and stock market crash in history has eventually been put into the rearview mirror by a bull market rally. Long-term investors simply played the odds and remained invested in businesses that offer game-changing innovation and/or sustainable competitive advantages.
But this heightened volatility has proved an irresistible lure for short-term traders and novice investors. Online investing app Robinhood, which is known for its commission-free trading and gifting of free shares of stock to new members, has seen millennials and/or novice investors flock to its platform. As a result, the company's leaderboard (i.e., the most widely held stocks on Robinhood) is filled with penny stocks and otherwise awful companies.
Source Fool.com
