New York stock price recovers in the background Is the number of "ultra-small" individual investors increasing rapidly?

New York stock market recovers sharply due to a surge in “super-small” individual investors August 26, 4:43

The Dow average stock price on the New York stock market, which plummeted in February due to the spread of the new coronavirus, recovered to almost its original level in the last six months. One of the reasons for this is the rapid increase in individual investors.

Dow average stock price recovered rapidly Against the backdrop of a sharp increase in individual investors

The Dow average stock price on the New York stock market fell sharply at the end of February due to the spread of the new virus, and the price fell by $10,000 in just one month, causing the market to panic. However, even after the real economy deteriorated, the economy recovered rapidly due to large-scale economic measures and the central bank's monetary easing, and on August 24, it exceeded $28,000 and almost reached the level before the crash. I brought it back.

It has been pointed out that there is a sharp increase in the number of individual investors behind the stock price recovery, and in particular, stock trading using smartphone apps has become widespread. Among them, the number of users of "Robin Hood", which is free of charge and can be traded from a small amount, has increased from 10 million at the end of last year to another 3 million in 6 months. Many users, also called “Robin Hoodder,” are young people, and although they are so-called “ultra-small-lot” investors, they are often taken up by the American media because they influence the movement of the stock price as a whole. I will.

In addition, other online securities giants such as "TD Ameritrade" and "Charles Schwab" are also increasing in use, and the number of people trading at home is increasing because the outbreak is restricted due to the spread of the new virus. It is a shape.

However, some have pointed out that the transaction is like a game, and some point out the risk of suffering a large loss when the stock price starts to decline.

Dow average stock price movement after spread of infection

It was February 24 that the stock price in the New York market began to plunge as the spread of the new coronavirus seriously impacted the economy. The Dow Average stock price repeatedly dropped every $1000, and during this period, measures to forcibly suspend trading were also invoked for the first time. On March 16th, the worst drop in history, the panic fell temporarily for more than $3,000.

Then, on March 23, the price dropped to the lowest price of $18,591 on the downside, and expectations for economic measures and the large-scale monetary easing of the Federal Reserve Board, the central bank of the United States Has started to rise in price.

After that, with the view that monetary easing will continue for a long time even when the real economy deteriorates, investment funds move to the stock market, and IT-related issues such as Apple, Amazon, and electric vehicle Tesla pull the market price. The stock price recovered rapidly. On August 24, it reached the $28,000 mark for the first time in half a year, recovering the level before the plunge.

A smartphone app popular with individual investors

"Robin Hood" is a stock trading service using a smartphone app provided by a startup company on the West Coast of the United States. Beginning in 2015, it attracted attention due to its easy use on smartphones and no transaction fees, and as of the end of last year, there were approximately 10 million users. In addition, the spread of the new coronavirus in recent years helped to limit economic activities such as restrictions on going out in the United States.

The number of transactions in June was 4.31 million, which means that the number of transactions in the three months from April to June doubled from the previous three months. Stock trading is not a one-share unit, but 0.1-share trading is also possible, and it is said to be popular with young people in their 20s and 30s.

In addition, in the United States, as a measure against the sudden economic downturn, a flat rate of $1,200 and JPY 120,000 were paid in Japanese yen, and unemployment insurance benefits were significantly increased. It has been pointed out that some people have started trading.

The increase in individual investors is said to be one of the factors contributing to the stock price recovery in the New York market, but on the other hand, he points out that the transaction is like a game and the risk of suffering a large loss when the stock price goes down. There is also a voice.

The app user “Robin Hooder”

Calista Ruick, who lives in the suburbs of New York, is a 20-year-old single mother with a boy who will be 1 year old in September. Since my workplace was closed due to the spread of the new coronavirus infection, I started using Robin Hood in April.

The initial investment was 1500 dollars, about 150,000 yen in Japanese yen, and based on information from SNS and acquaintances, he said that he started trading with electric vehicle maker "Tesla" and IT-related stocks that he knew well. I will. "We started with the feeling that "what's going to be $1,500", and then it was $2,000 in two weeks, and I was very excited," said Rick. After riding the wave of stock price recovery and investing for more than four months, the balance of assets exceeded $10,000 or 1 million yen.

Mr. Ryck said, "I will continue to hold the stocks forever. I would like to invest in a fintech company that handles electronic payments because the new coronavirus will stop using cash."

Expert "The presence of individual investors is increasing"

Regarding the recovery in stock prices and the rapid increase in individual investors who can be said to be “ultra-small,” Sumitomo Mitsui Banking New York chief economist Junko Nishioka said, “The presence of individual investors is increasing as a factor that gives momentum to stock prices. It is true that there is.”

Regarding the factors behind the stock price recovery, Mr. Nishioka said, "The largest is the expectation for technology stocks, the second is the expectation that the central bank will continue to carry out large-scale monetary easing, and the third is a wide range of investors. It's a layer that has entered the market."

On the other hand, Mr. Nishioka said, "I think it is true that the stock price is now "higher" than the actual corporate performance. Anyone wants to know what causes the stock price to fall. But in the event of a shock, individual investors' pockets can hurt."