Two weeks ago, we showed a bizarre breakdown of the main market participants during the latest market meltup/massive short squeeze phase: whereas institutional, hedge fund, CTA, quant and other institutional and systematic funds were refusing to chase the rally…
… retail investors were not only all-in but had literally doubled down since the Covid lockdown.
But how? And where were they getting the money from to chase stocks with such reckless abandon.
We now know the answer: according to credit card data analytics company Yodlee, after putting some money into savings and withdrawing cash (confirming some of those nascent rumors about ATM runs in March), the third most popular activity for most income segments was “securities trades” – i.e., buying stocks – especially among the pure middle class, those making between $35K and $75K….
In other words, the last suckers standing. The MSM has done a superb job of helping to loot the middle class.