Robinhood Investors Might Be Violating Basic Allocation Rules
Data indicates that Robinhood users, who are frequently learning how to invest in stocks, are piling disproportionately into a small number of risky strategies that violate important portfolio composition principles. The most popular stocks on the platform illustrate some clear purchasing trends that have yielded mixed results over the past six months.
However, even in those cases that have delivered favorable returns, a more nuanced analysis shows that investors may have taken on too much volatility to justify those gains.
Image source: Getty Images.
Source Fool.com
