Return Of The Retail Investor
Retail Investors Are Back In 2023
There’s a lot going on in the market right now.
A tentative recovery to start the year. Recent US inflation figures, right at expectations.
The collapse of a bank called SVB, and wobbles of another called CS.
But the most surprising of all, retail investors returning with a vengeance.
Did you know that retail trading volumes in early 2023 have already surpassed the peak trading volumes during 2021’s meme stock mania?
For reference, 23% of total market volume in 2023 verses 22% of total market volume in 2021.
Times like these are challenging for even the most seasoned of investors, so you’ll understand why we’re so excited about the data.
Retails were also the most heavily affected by the market downturn throughout 2022 (given their disproportionate exposure to high-growth speculative assets)
Despite that, they're back, and they're buying.
That’s in direct contract to the old guard, the instos, who are significantly derisking their portfolios by converting equities into cash.
And we’re not the only ones noticing.
Have a quick look at what some of the big names (TSLA, GS) on Wall Street are doing for their investor communications.
Exclusive shareholder conferences, typically reserved for analysts and high-profile investors, look to be on the way out.
Instead, welcome public & accessible ‘investor days’ that tailor their communications towards the investor demographic currently adding the most to their positions, retail investors.
Leveraging Investor Attention
This change in retail investor trading is unexpected, but there is an opportunity here.
We’ve always known how impactful retail investors can be, given that they make up the long tail of your shareholder base.
And when the majority of company comms are generally tailored towards the top 20, there’s no better time to try something new.
Let’s take advantage of this renewed retail attention, while the conditions permit!
Let's get something straight.
Investor attention is not the outcome.
It's the stepping-off point for a potential shareholder, and it relies on you to craft that journey until they're sitting cosily in your register.
Whether that’s through a fantastic onboarding experience or an accessible way for investors to reach you daily.
And it doesn't even stop there.
Every shareholder continues their company journey, some buying more, others selling down but always moving forward.
That journey, irrespective of what happens in the market, is primarily curated by you.
The good news?
It's the perfect time to work on this arm of your engagement strategy, given how surprisingly active the markets have been and how receptive investors are.
Even better, investors have more questions, research and concerns than ever that drive a genuine desire to interact with the company directly.
It doesn’t have to be complicated either.
- Treat all investors as leads.
- Generate engaging content to entice them to interact with you.
- Reach out with tailored communications around releases, webinars, etc and take them on your journey
- Monitor your investor pipeline and continue to nurture
They might not buy straight away, but you’re going to be top of mind when they do.
That's it for this week, but hopefully, you've learned something about what's happening with retail in this market.
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