Day Traders as ‘Dumb Money’? The Pros Are Now Paying Attention

WSJ

By Caitlin McCabe
Many hedge funds and asset managers now track retail-trading message boards for clues about where amateur investors might head next. ILLUSTRATION: LARS LEETARU

Last year, amateur investors took financial markets by storm. This year, Wall Street professionals are watching them closely.

Fund managers who might have once derided small-time day traders as “dumb money” are scouring social-media posts for clues about where the herd might veer next. Some 85% of hedge funds and 42% of asset managers are now tracking retail-trading message boards, according to a survey by Bloomberg Intelligence.

Publish : 2022-01-17 15:55:00

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