AMF Study of Retail Investor Behavior During the COVID-19 Crisis
April 27th | 2020
France’s financial regulator, the Autorité des Marchés Financiers (AMF), has released a study of retail investor behavior in the nation’s equity markets during the volatile trading due to the COVID-19 pandemic. The study gathered data from French financial institutions, both at home and abroad; and the AMF credits the granular nature of MiFID2 reporting with enabling its analysis.
The AMF’s press release highlights a few notable statistics from its study. First, the study shows retail investors were net sellers in the first week following February 24; followed by five consecutive weeks of net buying ending with April 3, which was the end date of the study. Over those five weeks, purchases of French equities by retail investors increased 4X over the equivalent period in 2019 and overall volumes increased 3X.
The AMF also observed that over 150,000 investors traded on the market for the first time since January 2018. The study also presents the profile of these investors, which is quite different from that of the usual investors in terms of age and of amounts invested. The entire study is available here on the AMF’s website.