What will the Reddit Retail Rampage of 2021 turn out to be? Will it, like most things that abruptly enter the mainstream’s consciousness, slide out of time and memory? Will it turn out to be something more than what currently resembles nothing but the final gasp of speculative fervor that so commonly marks the end of bull markets?
While attention and headlines were focused on the herd behavior of a select group of Reddit users and the hapless retail brokerages caught in the crossfire of the whole “Retail vs Wall St Bankers”narrative, little was said about the rampant speculation that the episode ignited in the broader retail investing world. How will this play out for the bank accounts of all involved?
The recent Reddit rampage through stock markets has brought the issue of fair access to trading capital markets to the fore.
While the anger has been directed at institutions, there is a broader issue at play here for regulators; which is that they, as a matter of policy, routinely shut retail out of accessing trading/investing opportunities.
Furthermore, there are serious implications to simply banning people from accessing opportunities to trade/speculate/invest in markets, and that is, they never get to learn!
Because they never get to learn, they cannot acquire the skills needed to let their money work for them, which is the idea that the establishment so fervently sells to the masses.
How dare they prevent us from making more money! How dare they help out the hedge funds whom we are squeezing to death!? The Reddit inspired crowd has been raging that retail brokers are against their clients, the little guys, that they only look out for the interests of Wall Street. But what if neither accusation is true, and retail brokers are really only looking out for themselves?
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