In spite of the astronomic job losses and decline in productive activity that shared striking similarities with the global recession of the 1930’s, research by scientists at Paderborn University showed that in 2020, stock indices in certain industries still recorded significant growth. Quite notably, a lot of changes were observed in global investment trends as a fallout of the covid-19 economic crisis, such as increased trading intensity among retail investors by 13.9%.
Social Media Plays a Major Role
One of the most significant trends that emerged as a fall out of the recession was the use of social media to drive changes in real-world financial markets.
As the first year of the COVID-19 pandemic went by, lockdown measures kept people at home with nothing much to do but socialize through their digital devices. Online chat rooms quickly became dominated by business discussions. It wasn’t long before groups of daring Retail investors leveraged on this trend to embark on collective efforts to influence the markets.