Robinhood’s Steve Quirk: Two weeks of net selling at the end of July

>> WELCOME BACK. RETAIL INVESTORS, I DARE SAY, ARE TRADING WITH A LITTLE BIT OF A VALUE BENT THESE DAYS. JUST LOOK AT HE'S NODDING ALREADY. JUST LOOK AT THEIR BEHAVIOR. LAST WEEK SELLING SK HYNIX AND WESTERN DIGITAL EVEN AS THOSE STOCKS WERE REBOUNDING BUYING GOOGLE, APPLE, BROADCOM AND SPACEX. OF COURSE HERE TO DISCUSS IS ROBINHOOD'S CHIEF BROKERAGE OFFICER STEVE KIRK. AND YOU TOLD ME SOMETHING EVEN MORE INTERESTING ABOUT THE WHAT HAVE YOU SEEN FOR THE SELLING BEHAVIOR THE LAST COUPLE OF WEEKS. >> WELL, SO AT. >> THE BEGINNING. >> OF JULY. >> WE ARE SORRY. >> AT THE END OF JULY WE SAW TWO WEEKS OF NET SELLING. AND AS I WAS TELLING YOU, WHEN YOU LOOK AT THE AVERAGE AGE OF OUR CUSTOMER, WHICH IS EARLY 30S, THEY'RE ALMOST ALWAYS NET BUYERS. I MEAN, THEY'RE IN THAT PHASE WHERE THEY'RE GOING TO HAVE A LONG INVESTMENT DURATION. SO THEY'RE, THEY'RE ACCUMULATORS OF STOCKS, GENERALLY SPEAKING. SO WHEN WE SAW THAT, THAT CAUGHT OUR ATTENTION. AND, YOU KNOW, I THINK THERE'S A LITTLE BIT OF NERVOUSNESS ON YOU GUYS BEEN COVERING IT IN QUITE, QUITE A BIT OF DETAIL ABOUT SOME GEOPOLITICAL THINGS, BUT ALSO YIELDS AND WHAT THAT'S GOING TO MEAN FOR THE MARKET IN GENERAL. >> I WASN'T SURE IF THEY WERE SELLING. I MEAN THAT WAS BASICALLY AS STOCKS WERE HEADING BACK TOWARDS ALL TIME HIGHS. >> EXACTLY. >> SO IS THAT PART OF WHAT'S GOING ON HERE. >> THAT'S PART OF WHAT'S GOING ON. I MEAN OUR RETAIL CUSTOMERS ARE THEY REALLY ACT AS PORTFOLIO MANAGERS FOR THEIR FAMILY INVESTMENTS. SO WHILE YOU CAN LOOK AT SECTORS AND SAY, HEY, THEY'RE GETTING OUT OF THIS SECTOR, GETTING INTO THIS SECTOR, IT'S REALLY MORE ABOUT WHAT'S APPRECIATED WITHIN THEIR PORTFOLIO. AND SHOULD THEY TAKE SOME OF THAT EXPOSURE OFF AND GET INTO SOMETHING THAT HASN'T APPRECIATED AS MUCH? >> RIGHT. BANK OF AMERICA'S AUGUST FUND MANAGER SURVEY, I THINK, FOUND IT WAS THE SECOND MOST BULLISH SINCE 2022. THEY SAID THERE'S NO BEARS. AND THAT'S WHY THIS JUMPS OUT TO ME EVEN MORE, BECAUSE ACTUALLY SOME OF YOUR KIND OF YOUNGER CLIENTELE ON ON THE PLATFORM, THEY WERE POSITIONING A LITTLE BIT MORE CAUTIOUSLY. AM I AM I OVERSTATING IT? I MEAN. >> NO, NO, NO, NO, BECAUSE AND AGAIN, IF YOU IF WE JUST LOOK AT THIS YEAR IN AGGREGATE, IT'S BEEN THE VOLUMES HAVE BEEN STRONG. DEPOSITS HAVE BEEN STRONG. THERE'S THERE'S A HEALTHY OPTIMISM ABOUT THE MARKET IN GENERAL. I JUST THINK THEY JUST GOT TO A POINT WHERE THEY SAID, YOU KNOW WHAT? WE'VE SEEN SIGNIFICANT, SIGNIFICANT GAINS ON THE BACK OF THE GAINS WE'VE SEEN IN THE LAST COUPLE OF YEARS. AND, YOU KNOW, WE'RE GOING TO TRIM SOME OF THAT EXPOSURE AND LOOK FOR OPPORTUNITIES TO GET INTO OTHER THINGS. >> LET'S REVEAL THE MYSTERY CHART, SHALL WE? TO REMIND EVERYBODY THIS IS THE SECOND MOST ACTIVE, WHAT DO YOU CALL IT, PREDICTION MARKETS ACCOUNT ON YOUR PLATFORM OTHER THAN SPORTS. RIGHT. OF COURSE DOMINATE. AND THE ANSWER IS. BITCOIN BITCOIN. SO IT'S IRONIC AT A MOMENT WHEN THE PRICE IS NOT MOVING AROUND THAT MUCH, THAT THERE'S SO MUCH INTEREST STILL IN BETTING ON THAT PRICE MOVE. >> BUT, YOU KNOW, IF YOU LOOK AT WE HAVE SOMETHING CALLED REOCCURRING INVESTMENTS. SO IN OTHER WORDS, IF I WANT TO PUT $50 IN THE MARKET ON A MONTHLY, WEEKLY, YOU KNOW, ANNUAL BASIS, I CAN SET IT AND IT'LL HAPPEN ON A CONTINUOUS BASIS. FOR THE LAST FIVE YEARS, THE MOST POPULAR INSTRUMENT TO BE ACQUIRED IS BITCOIN. >> SO IT'S STILL THERE. PEOPLE STILL WANT TO BET ON ITS DIRECTIONS. AND I GUESS THAT REFLECTS A FUNDAMENTAL BET BY THIS AGE GROUP ON ITS SUCCESS. I ALSO WANT TO ASK YOU ABOUT PERPS. >> YEAH. >> WHAT ARE PERPETUAL FUTURES. AND AND AS I'M TRYING TO UNDERSTAND IT, IT LOOKS TO ME LIKE THESE ARE WAYS OF BETTING ON STOCK MOVES OUTSIDE OF A TRADITIONAL EXCHANGE. DO YOU GUYS OFFER THESE OR. >> WE OFFER THEM IN EUROPE. YOU DO. WE DO NOT OFFER THEM IN THE US. BUT ESSENTIALLY WHAT THEY ARE IS THEY'RE THERE. AS THE NAME IMPLIES, THEY JUST DON'T EXPIRE. IT'S A FUTURE THAT DOESN'T EXPIRE. WE OFFER FUTURES TODAY, BUT THEY ALL HAVE AN EXPIRATION DATE, RIGHT? THESE DO NOT EXPIRE. WHAT'S BEING OFFERED NOW BY SOME IN THE US ARE PERPS ON ON THEY STARTED IN THE CRYPTO SPACE, BUT NOW THEY'RE SORT OF MORPHING INTO THE FUTURE SPACE AND EVEN INTO SOME. >> I'M NOT GOING TO TRY TO PRETEND HOW THEY UNDERSTAND HOW THEY WORK, BUT IS THE ULTIMATE PURPOSE TO GET AROUND THE RESTRICTIONS OF EXCHANGES AND TRADING. I MEAN, IS THAT WHAT? BECAUSE THAT'S WHY IT STARTED IN CRYPTO, IS IT NOT? >> NO. I THINK THE ULTIMATE PURPOSE IS TO NOT HAVE TO HAVE AN EXPIRING CONTRACT. IN SOME FUTURES CASES, YOU HAVE RISK OF DELIVERY. I DON'T WANT, YOU KNOW, A THOUSAND BARRELS OF OIL COMING TO MY PLACE. AND THERE'S A COST ASSOCIATED. EVERY TIME THERE'S A ROLL, THERE'S A COST ASSOCIATED WITH THAT. AND SO IF I CAN GET RID OF THAT, THAT'S REALLY OPTIMAL FOR ME. I JUST WANT TO OWN EXPOSURE TO PICK IT. >> JUST BUY IT. >> YEAH. WELL YOU COULD, YOU COULD. >> BUT I KNOW WHAT YOU'RE SAYING. WITH COMMODITIES AND CERTAIN TYPES OF THINGS, YOU GET THE, YOU KNOW, WELL MORE TO COME ON THIS FRONT. THESE ARE NEW, THEY'RE STILL N