AMATEURS HELP LIFT MARKETS

The soaring popularity of stock trading by the wider American public during the pandemic has actually been helpful for the functioning of the market more broadly, says one veteran trader. The involvement of amateur investors means less volatility and fewer irregular trading episodes, said Larry Peruzzi, Boston-based director of international trading at Mischler Financial Group Inc. He pointed to the decline in the Cboe Volatility Index, or VIX, from highs in the mid-80s in March to the mid20s currently, even as trading volumes on U.S. exchanges have been elevated in the past few months compared with recent history. “Coupled with the decline in volatility, it’s the best scenario that we would want,” said Peruzzi. He said retail investing “tends to be spread throughout the day” — as opposed to institutions that often trade near the beginning and end of the day.