A joke that makes some people PAPER millionaires. People are ignorant about liquidity risk and just assume there will be buyers when they want to cash out.
The venn diagram of internet users that read about super specific financial products, decide to buy them, while not even understanding the need to keep an emergency fund such that a move like this leaves them with under $200 in their account seems to be growing.
It seems to be a weird mix of wall street cosplay and financial ineptitude.
Which is really odd, since if they had any idea of what they were doing, they wouldn't need to sell. Trading is among one of the few industries out there where you don't need to have anything like a customer.
What you do is make money, and if you're making money, well, you don't need to ask anybody else for money. This tells me that its a bunch of executives who either don't know anything about trading and/or don't have any coherent strategy, and are really just trying to throw enough buzzwords out there to get investor capitol.
Oh they have gone nuts indeed. I see this pattern among my friends who are mostly financially uneducated. They have never traded stocks and have little understanding of how markets work.
They actually think they can read the “news” on reddit and buy/sell accordingly, outsmarting other players.
Ironically, your last statement is kinda completely inverted.
A bunch of financially illiterate newbies who don't know half the terminology and don't understand the underlying math have gotten tricked into thinking that "it's all rigged" or "it's all a scam" and that they're going to get rich quick by participating in the scam. Completely oblivious to the fact that the only scam happening is to them.
Trump-supporters think the election was a scam and barged into the capitol. WSBers think the stock market is a scam and bought GME. Same thing, different day.
Right. You can say its hyperbole or "locker room talk" but in situations like this, it's very clear that a large part of the financial sector is _absolutely sincere_ when they look at retail investors as what they literally call "dumb money", "dumb flow".
Anyone who is trading with leverage. Think about it: the market is (or was) not, and interest rates are super low. You’d be an idiot to not think that more than a few people are going to try and take advantage of that.
A lot of these companies are probably packaged into ETFs or mutual funds, which are then purchased by investors without significant review of each component in the fund. Most investors probably have no idea that this is even going on in the world, let alone which companies are benefiting and if those companies are in their funds. It seems unfair to want to target people who simply are ignorant.
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