Robinhood users buy and hold companies ‘they know, understand and trust for the long term.’ Here are their favorite stocks.

It all shows that Robinhood users are buying — and holding onto — companies they “know, understand and trust for the long term,” the company said in an announcement Friday morning. Uncovering the Robinhood Investor Index.

“The index captures how our customers are investing based on Robinhood’s top 100 most-owned stocks,” the company said in a statement.

“Unlike other indicators, it is not weighted by dollars, but by convictions. We measure customer conviction for each investment by looking at the percentage it makes up in their portfolio, adds Robinhood.

“And to ensure all customers are equally represented, we average convictions for each investment all customers make, whether they have $20 or $20 million in their accounts,” it added.

“The index does not reflect the position or performance of any single investor, but rather is a holistic view of what our customers are investing in on a relative basis,” said Robinhood. (The index does not include exchange-traded funds or cryptocurrencies.)

Dealing with institutional and retail investors Volatile stock market and evaluation Chances of recessionRobinhood hopes that there may be value in users seeing where others are putting their money.

For 2021, the 100 most widely held stocks for Robinhood users beat the overall performance of the Nasdaq Composite, and the two are now essentially equal, according to Robinhood data.

Nasdaq
comp,
+2.11%

Down about 23% year to date. Dow Jones Industrial Average
DJIA,
+1.19%

About 12% and the S&P 500 fell
SPX,
+1.53%

15% of that time is off.

“Validity is really important to a segment of our investors, and so they will find it very valuable,” said Steve Quirk, chief brokerage officer at Robinhood.

Put another way: validation is effectively knowing that a particular group is adopting the same approach; For some, it helps to feel like they’re not alone.

Of course, it can be difficult to fully follow what others do, but Quirk points out that the index is just one data point to inform investors’ decisions.

Other gauges paint a gloomy picture of equity markets. More than half of people polled think stocks will fall in the next six months, according to the latest SEntement survey From the American Association of Individual Investors.

But it could be a ‘buy’ signal, as the organization considers the sentiment survey “a contrarian indicator”, for example, a price opportunity.

Overall, the most represented sectors in the index include consumer durables, technology and consumer services, Dr. Robinhood.

In early 2021, social media support from places like Reddit’s WallStreetBets boosted the share price of meme stocks like GameStop.

But Robinhood came under fire when it temporarily halted purchase orders from GameStop and other companies during the trading frenzy. Because it was a necessary step parallel requirementsCEO and co-founder Vlad Tenev said later, emphasizing that most Robinhood users Buy and hold investors Instead, traders look for short-term plays.

Now Robinhood has a new challenge: Rough stock-market conditions are hurting users’ portfolios and presenting headaches for the company itself. Tenev last month Announced plans to cut 23% of workforce Due to poor economic conditions that hampered business operations and reduced the value of their holdings.

Assets under custody fell 31% to $64.2 billion in the second quarter from the first quarter, Robinhood said in its second-quarter earnings results.

Robin Hood
veil,
+4.95%

Shares are down nearly 40% year to date.

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