Study shows spike in people trading shares during COVID-19

GraniteShares has reported that 15.5% of people who own shares claim to have started buying and selling more since the coronavirus pandemic started.

The research from the ETF provider also suggested that 3% of the adult population – over 1.5 million people – say they have bought some for the first time. Only 10% of people who own shares say they have been trading them less often since the crisis started.

The study, based on responses from 996 people during September, also estimated that around 158,000 people claim to be trading shares daily.

Of those who have started to trade more since the outbreak of COVID-19, 30% said it was because share prices fell dramatically at the start of the crisis and presented a good buying opportunity. Another 25% said they wanted to take advantage of increased market volatility.

The findings revealed that just over one in five (22%) said it was because there was a period when share prices started to rise dramatically and they didn’t want to miss out. However, GraniteShares also found that 11% of respondents said it was because they had been made redundant and they thought trading shares would be a good way to make money.

GraniteShares founder and CEO, Will Rhind, commented: “This trend has been fuelled by a combination of factors including increased volatility in the markets, people having more time on their hands as a result of being furloughed, and in some cases, an alternative to betting on sporting events, which had been cancelled.

“However, investing in shares should always be part of a planned and balanced investment portfolio. For many retail investors, a portfolio is likely to consist of a mix of funds, ETFs and potentially some individual stock positions, as well as a cash reserve.”

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