Get the best daily market and macroeconomic commentary anywhere for less than $7 per month.
Already have an account? log in
‘One Helluva Ride!’: Dip-Buying Perfection And The ‘Bizarre’ Case Of The Robinhood Rally
To say the financial world is fascinated by the prospect of retail investors driving sector/style rotations via their Robinhood accounts would be an understatement.
This has become a veritable obsession for market participants and the sell-side has most assuredly picked up on it. Almost every bank has touched on this topic du jour at least once over the past two weeks, and in some cases multiple times.
It's important to give credit where it's due. Quite a bit of the fascination with this story
Early April I bought 3 stocks to throw in the bottom of the drawer assuming if 1 made it through it would pay off, like penny stocks. I can not be the only older person to do that. They saved my ass when a couple of my more thought out picks failed me.
It is more likely the young childless receivers of benefits who are the Robinhood darlings. The working poor hit the ATM.
As regards the naysayers on PPA; same old speak from the wealthy empowered, namely that those at the bottom are ignorant and can’t be trusted with money nor the right to vote. Now we are told by the statisticians that you are most likely to stay in the class into which you were born in the good old US of A. Skin color is one good reason to take to the streets. How long before the poor and class bound join them. The Stockmarket is still the gaming table of choice for the wealthy and they apparently don’t want to sit next to middle class riffraff who should stick to lottery tickets and slot machines. How does capitalism extend to the masses if they aren’t invested in the means of production via ownership. If the middle class aren’t smart enough to invest in the market, how the heck are they going to accumulate enough to retire on.
What middle class exists? Forget intelligence… gen X got slammed by the GFC, gen y got eviscerated before they even stepped in the economy and gen z has zero prospects. The decoupling of income with productivity has hit the breaking point from the 70s to now… roi on working for a living is essentially negative. No investment is returning higher yield than paying off credit card debt. 80% of the population is working poor, poor or in dire poverty. Universal health care and UBI are likely the only way anything improves at this point. Investment makes no sense if you have negative net worth and negative net income after living expenses.