CU6 - ASX Charts, page-1988

The experience of recent COVID lockdown shows us that during time of market stress it is not unusual for modern retail investors to be net buyers of the highest of high beta stocks while institutional investors are net sellers. I have no evidence as such that this exists at present but this is what I am instinctively feel is happening again. On this alone I think it more likely that more retail are holding rather than selling primarily driven by our human psychological needs to avoid the pain of truth of any loss making exercise. In behavioral finance this forms the basis of the disposition effect. Institutional and sophisticated investors on the other hand are historically more likely to have hedged their portfolio, be it either directly using both long and short hedging positions or indirectly through the having built a portfolio of assets with inversely correlated positions, both of which they can and will reverse or rebalance at will when and if required. I know ! Long winded ! Not sure if that was the answer you were looking for. But I do believe that we have a situation now where no one in particular is winning but the losses being incurred by retail as a percentage of their portfolio is however far greater than that of other participants.