2 Top Robinhood Stocks to Sell Before the Next Market Crash
The stock market has been resilient during a tumultuous 2020 (the S&P 500 is up about 7% since January), but as many people have personally experienced this year, that performance doesn’t tell the whole story of the U.S. economy. One-third of Americans say they dipped into their savings or retirement stash in order to pay bills in August, according to the Pew Research Center. And only one-third of those who lost their jobs returned to the same job, while 15% have had to take on different roles, and close to 50% of those people remain unemployed.
The rise in trades on zero-commission trading platform, Robinhood, is illustrative of the disconnect between the economy and the stock market. In the first four months of 2020, Robinhood added three million new accounts — half of which belonged to first-time investors. Robinhood has made it easy to make trades at no cost, and as a result, traders are making small bets on risky stocks. This trend has undoubtedly helped prop up the markets this year. It’s also helped to make them pretty unstable. Although Robinhood investors may not mind taking on some risk, it might be a good time to start cutting loose the particularly expensive stocks that are popular on the trading platform, including Sorrento Therapeutics (NASDAQ: SRNE) and Peloton Interactive (NASDAQ: PTON), in case the market’s bottom falls out.
Sorrento Therapeutics stock is up more than 190% this year, making it one of the hottest healthcare picks of 2020. The stock took off in May when its CEO, Henry Ji, offered Fox News an optimistic view on a COVID-19 antibody treatment: “If we have the neutralizing antibody in your body, you don’t need the social distancing. You can open up a society without fear.”