True, some retail investors are dipping their toes back into the equity waters. The housing and job markets are improving, which helps bolster confidence. And, more importantly, despite a tough August, stocks remain close to all-time highs.
Still, retail interest is nowhere close to what it used to be. Volume on the major exchanges is languishing at levels not seen in almost two decades.
The fact remains that five long years after Lehman Brothers went bankrupt and helped trigger the second epic equities crash in less than 10 years, mom-and-pop investors are still leery of the stock market.
On the other hand, you can’t fight the tape. Clearly the market sees something in these retail brokerage stocks. Here’s a quick look to help decide whether they’re worth the risk.