The Battle Continues 🥊
Over the past few days, one of the most revolutionary stock market events occurred. In fact, in many ways it was a literal revolution. Poor versus rich, proletariat versus bourgeoisie, or retail vs institutional. Hundreds of thousands of retail investors opened bullish positions on GameStop, AMC, and other stocks that institutions were shorting. All of this to force the Wall Street elite and Hedge Funds shorting the same positions to lose billions while making Average Joe a winner for once.
Today, however, the subreddit r/Wallstreetbets who was behind most of this got privated, and unavailable for users to see. Immediately a backlash ensued with members of the forum as well as celebrity investors such as David Portnoy calling out what they saw as an unfair hypocrisy from Wall Street “fats cats’ rejecting a taste of their own medicine. Many feel their attempt to be silenced was unfair and their anger is loud and clear. Tomorrow that anger may just show as many investors believe these stocks will continue to fly in response to the ban.
Although the reddit is back online as of this writing, other limitations have been implemented from brokerage firms to limit the chaos. Some aim to take these limitations further, for example, the top securities regulator in Massachusetts said the New York Stock Exchange should halt trading in GameStop stock for 30 days so it can “cool down.” Do you think this will continue? And if so for how long?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
Originally published at https://invstr.com on January 28, 2021.