Digitalization and the Rise of Retail Stockholding

Sep. 29, 2025

Digital platforms and social media are reshaping how households enter financial markets. At the SHoF/CEPR Annual Conference on Household Sustainable Finance in Stockholm, Michael Haliassos, Professor and Chair for Macroeconomics and Finance at Goethe University Frankfurt, discussed the opportunities and risks of this trend.

Key insights: 

• The growing role of social media, online platforms, and robo-advisors in encouraging stock market participation. 

• How lower entry barriers make investing easier but can also fuel herding, copy-trading, and overtrading. 

• Evidence that financial literacy and informed peer networks significantly boost long-term participation and retirement saving. 

• Why passive, diversified strategies often outperform frequent trading. 

• The importance of trusted financial advice, and the risks of relying on unregulated influencers or AI-generated guidance.