A couple weeks ago I made multiple articles talking about how you shouldn’t invest in Gamestop because its prone to dropping in price. I was right, it fell off the planet, but in a sense I was wrong. My reasons for wanting that were wrong. I told everyone that it dilutes the shares of peoples retirement funds(which it does), it makes the market more volatile(which it does) and it makes retail investors more prone to risk(which it does). I thought that RH, Hedge Funds and the system were just doing what they were supposed to. In my defense not much is known about the inner workings of the financial sector. However, after watching the Gamestop hearing put on by congress it made me very upset. Then I watched Jerome Powell give his quarterly report and I was also relatively upset.
The markets in America are not just for the ultra rich they are for everyone that is invested in them. During the hearing, the CEO’s misdirected questions because they knew they didn’t need to answer them and they were limited to the time given to each congress member. The congress members had no financial experts to aid in questions and obviously didn’t do any homework besides brief skimming. The CEO of Robinhood had no remorse or shame when they talked about the boy who committed suicide due to their platform. He had no remorse for the people that lost millions because of his platform and its cirruot policies. Citadel had no remorse for their actions either. It was disgusting. The problem with these companies is that on the outside it seems as if they are doing things for the good of the people but the inner workings put on display lead much to be concerned. Where is the ethics, the want to improve society?
What happened to one of the best markets in the world? The answer is that, as soon as the money makers seen the influx of traders enter the market during Covid, they thought of how they could transport the money from them into the hedge funds own pockets.
Now, Reddit and its gang, are on a mission to win a fight for the little guys. Some people will inevitably lose, as I said before, but a transfer of wealth will happen. Why? Because the idea of capitalism is as old as time and so is democracy. It allows us to have a voice even when it seems so little. The power of a million voices is stronger than thousands and in this case we hope thats true as well. Reddit is fighting the big cats now on the stock AMC. Tomorrow will prove to be a pivoting point for the fight and I would now like to say that here at Financial Foundry, we have your back. I hope all the diamond handed apes bring back some fresh tendies and hodl their stocks for as long as possible. What a volatile market we live in. Good luck guys.