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U.S. Equity Managers Not Overreacting to Restive Retail Investors

They have taken notice of recent investor behavior but aren't altering their processes.

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Retail investors have powered astonishing price moves in stocks such as GameStop (GME), AMC Entertainment (AMC), and BlackBerry (BB). Trading volume in U.S. equities from retail investors surged by a third in 2020 versus 2019, according to The Wall Street Journal. Observers, including Morningstar's John Rekenthaler, have compared the behavior of today's retail investors to that of investors in the late 1990s, before the dot-com bubble burst. Fund managers have taken notice, but they are responding differently.

David Carey does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.