0/ The @DriveWealth team just published their 2Q Global Retail Trends report:
-1H21 trading volume surpassed FY20
-95% of trades placed had fractional component (think $SQ, @RevolutApp @monzo)
-$250 avg trade size in 2Q21
-Retail invested a record $28B in cash in June.
1/ Not a surprise given investor base but younger investors have fueled new account growth
-Under 40 was 73% in 2Q21, 77% in 1Q21
-Under 30 was 41% in 2Q21, 49% in 1Q21
-32% of people in the US said the pandemic inspired financial discipline
-33% said they will increase investing
2/ Geographically they saw a 62% increase in LatAm investor deposits, while inflows from APAC outpaced EMEA & US investors
3/ In terms of trading activity 2Q21 saw lighter activity in aggregate due to a slowdown in April & May (with that 1H21 still outpaced FY 2020).
-Trading was +22% in June
4/ The avg # of trades per account declined to pre pandemic levels to 9x
-Investors age 30-49 remained most active
-Avg trade size was $250 +15% from 2Q20 but down 12.5% from 1Q21
-Investors aged 60+ traded larger amounts (60+ $345 vs. under 60 $246)
5/ They highlight a 4Q20 survey by FINRA regarding the top 5 reasons an individual opened a new account by race.

This compares to a SIFMA pole of exchanges, trading arms, market makers about increased retail participation
6/ They also highlight HSA accounts which dovetails with a product they rolled out DriveHSA.

Most people don't realize they are triple tax advantages
-Pre tax contributions
-Grows tax free
-Tax free withdrawal for medical expenses
7/ In terms of the most frequently traded stocks it was a lot of familiar names e.g., Big-Tech $AAPL $AMZN $MSFT, along w/ $TSLA & $DIS, meme stock $GME & $AMC, while $COIN cracked the top 10.

For advisors it was all the Vanguard ETF's $VOO $VTEB $VXF $VEA $VWO, etc...
8/ If we look at the trades by region in APAC the top names were $TSLA $AMC $GME $AAPL $PLTR $AMZN $MSFT $COIN, $NIO & $VOO, in LatAm was similar to names of last Q but $KO & $COIN added, while EMEA also added $COIN & $AMZN
9/ They highlighted work from @yield_x as it pertains to the Fixed Income markets & the income required to beat inflation
10/ Finally they talk about the embedded finance evolution & how much room there is to grow for financial inclusion:
-In the US only 1 in 2 Americans has any exposure to the stock markets
-15% of families in the bottom 20% of income earners hold any stock
11/ -White investors own 3x as much stock as Black or Hispanic investors

While Fidelity & @RobinhoodApp won't disclose the #s they both highlighted growth in women investors
-# of women using Fido was +41% in '20 vs. '19
-# of women using RH was +5x from Feb '20-'21
12/ The whole report is worth a read and has impact on not just $HOOD $SCHW $IBKR $NSTB (eventually @DriveWealth) but the @acorns & @SoFi of the world, exchanges, and eventually $SQ, $PYPL, etc...

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More from @JohnStCapital

14 Jul
0/ Ben Bernanke spoke in a fireside chat on inflation, the real economy, monetary policy, etc... Re: inflation he notes Economists / Fed have revised their inflation forecast higher. "There is a very substantial transitory component, looking at base effects; used cars, airfares /
1/ hotel prices that dropped dramatically in '20 are coming up to more normal levels. There are bottleneck supply issues, chips not being able to produce cars, a commodity price jump that's not sustainable or won't continue to provide an inflationary shock, etc... Other pot'l
2/ transitory effects are the labor market. Including trend, Fed is still ~10M jobs short from pre-pandemic rate, yet participation rate hasn't moved since last summer, a lot of vacancies, there is a supply effect coming from labor market which is no doubt transitory. Parents
Read 25 tweets
14 Jul
0/ $BAC CEO Brian Mohynihan on spending: "We are halfway through the year & total payments are $1.8T or ~60% of last year's level (which was a record).

Total BAC consumer SMB payments set a 4th quarterly consecutive record, reaching $976B, +41% YoY & +23% over '19. Image
1/ "Spending accelerated as COVID vaccinations increase, business reopen & domestic travel increase. Combined spend at retailers & services comprises over 50% of debit & credit card spending, a portion of the total spend +27% vs 2Q19.
2/ As of mid-June, domestic airline purchases were +8% vs '19 while int'l airline purchase on their cards are still down ~40%, showing the difference of the progress in United States versus other places (relevant for $V).
Read 6 tweets
14 Jul
0/ A new report out of @PitchBook & NVCA on the venture ecosystem; 2021 is on track to be a record year with $150B raised YTD, or 90%+ of last year’s previous record total ($164.3B) Image
1/ Mega-deals of $100M+ have already hit a new high-water mark with 198 deals closing in 2Q, & YTD total of $85.5B across 385 deals, surpassing 2020's record. Image
2/ No surprise given all of the Tiger / Coatue / Altimeter headlines but crossover investor participation is at unprecedented levels with 1H21 seeing $63.5B invested across 524 deals (well on track to cross $100B this year).
Read 7 tweets
13 Jul
0/ On whether or not $JPM would be disintermediated by FinTech co's Jamie Dimon said, "I think we have huge competition in banking & shadow banking, fintech & big tech...obviously, there's always a changing landscape, we have brands & capability & products & services & market
1/ share and profitability. I think some of these competitors are going to do quite well. I think a lot of them will succeed over time. But that's called good old American capitalism. I'm quite comfortable we'll do fine."
2/ On $GS earnings they highlighted "Based on our opening expectations of that business, we have had to put less rate on deposits to attract customers. It's turning out that the user interface & the engagement w/ the corporate client set just in terms of what we're offering by
Read 4 tweets
8 Jul
0/ Great podcast with @velez_david & @patrick_oshag discussing not just what David & the @nubank team have done building the world's largest digital bank (40M customers), but the LatAm startup ecosystem at large, raising money from Berkshire, disrupting incumbents, & culture
1/ Across LatAm the largest companies are often banks; in Brazil 5 of the top 10 companies are banks. David highlights that over the last 20 years Brazilian Banks have earned an ROE of ~20-30% sometimes 10x what you'd see in the US & Europe through volatile macro cycles
2/ It was in 2012 where the smartphone penetration was starting to grow very fast in Brazil & he got excited about the opportunity to deliver financial services to anyone via their phone; in a region where 250M+ people are unbanked & many more underbanked
Read 20 tweets
6 Jul
0/ We've seen a number of S1s filed for FinTech IPO's recently including $HOOD $MQ $GLBE $DLO. The co's / their advisors pay for / commission industry reports which we get to be slight beneficiaries of regarding broader macro data points / projections

A few highlights...
1/ Re: $HOOD

"30% of retail investors in the US place orders using a mobile app, according to 2018 FINRA surveys. That number grows to 59% when looking solely at participants aged 18-34."

"Retail investing now comprises roughly 20% of U.S. equity trading volume, doubling in
2/ the decade from '10 to '20."

"~60% of all Americans still do not have investments outside of their retirement accounts, and, an even greater % of young adults aged 18-29—68%—have no money invested in the stock market at all.
Read 34 tweets

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