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SAD BUT TRUE
The typical retail investor spends about six minutes on any kind of research before buying a stock.
Even then, most of that “research” is shallow. The source of information reflects this. Among investors under 35 years of age, 61% turn to YouTube for investing content. For Gen Z, the reliance is even more concentrated. About 76% depend on platforms like TikTok, YouTube and Reddit for financial education.
75% of those turning to technical price-chart analysis techniques look at one day of data or less. When Nobel Prize winning economist Eugene Fama said that all information is contained in the price, this is certainly not what he meant!
In such an environment it should be easy for professional investors to achieve alpha, but many managed funds underperform the market (see chart). Go figure!
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