Institutional investors have always screwed over the small guy, but it finally looks like the small guy is winning in a few names. Reddit more specifically Wall Street Bets has created a movement that is scaring institutional investors, traditional investors and the media. For me I’m torn because I believe in what is happening, but I believe institutional investors have more capital and the potential to do more harm in the markets while leaving retail and Wall Street Bet as the scapegoats.
GameStop has broken $500 a share in the premarket trading hours. This is an amazing feat and the question is, is there an exit plan or has this evolved in to more about sticking it to the big guy versus the financial gain? If you go through the sub Reddit many users say they won’t sell, but at some point people will take profits. I truly believe the bubble will burst at some point, but the question is when?
Other names like AMC also continue to run and people are trying to guess which stocks will be targeted by these users.
The story has garnered so much attention it seems that media is still supporting larger institutions. I for one think there needs to be regulation! You may not think that’s a good thing, but the regulation should be on large institutions shorting companies into oblivion and opening themselves to unlimited risk. What I see happening in Reddit is no more than people standing on a corner explaining their thought process - it’s not collusion.
This is an exciting time we live in and I’m wondering if this is going to bring about a new era of trading?
