The rise of mom-and-pop investors in the stock market will 'end in tears,' warns billionaire

[Zorro]

‘They are just doing stupid things,’ Cooperman said

Billionaire Leon Cooperman on Monday said that the emergence of individual investors eagerly scooping up stocks that have been rocked amid the coronavirus-induced downturn will ultimately not end well for those individual investors.

The ‘Robinhood markets are going to end in tears,” said Cooperman during CNBC’s show “Halftime Report” on Monday, referring to the popular online trading platform.

Cooperman referred to a Barron’s article that noted that free trading app Robinhood has added more than three million accounts this year, and now has over 13 million, with a median age of 31.

A number of recent reports attribute the market’s rally since its March 23 low, and its subsequent choppy trading, to an era of zero-commission discount brokerage trades, ushered in by Charles Schwab and platforms like Robinhood that cater to younger investors.

Critics like Cooperman say that a dearth of diversions due to COVID-19 lockdowns and unemployment have created a perfect environment for newly minted day traders to wreak havoc on Wall Street.

https://www.marketwatch.com/story/the-rise-of-a-mom-and-pop-investors-in-the-stock-market-will-end-in-tears-warns-billionaire-cooperman-2020-06-15

[Mike 03]

1. Whoa, if this is true...

A number of recent reports attribute the market’s rally since its March 23 low, and its subsequent choppy trading, to an era of zero-commission discount brokerage trades, ushered in by Charles Schwab and platforms like Robinhood that cater to younger investors.

If this is true, I hope not too many are borrowing to buy equities. That might not end well.

[Steelrolled]

3. Zero commission trading started with Schwab last fall

and other brokers quickly followed. And before that, many brokers had various free commission incentives. I have found reporting that tries to explain what the market is doing to be complete speculation that often makes no sense.

[ProfessorGAC]

2. K&R

People have done very well, for quite some time now, having legitimate, licensed professional managers handling their funds. From billionaires to folks holding a 401k worth $75,000, those that let the pros handle it have done fine, in the aggregate.
The actual focus, time, and modeling skills it takes to be consistently successful are things the average person doesn't have. Even if they think they do.