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One could argue that the whole situation came about because outsiders (Reddit users) caught the "experts" (hedge funds) with their pants down.
by uh_uh 6y ago
One could argue that the whole situation came about because outsiders (Reddit users) caught the "experts" (hedge funds) with their pants down.
- mobjack 6y agoMarket experts have been caught with their pants down many times before because of the actions of uninformed investors. In 1999, the rational move would be to short tech stocks as they were over valued, but those who tried it lost lots of money because they didn't factor in how crazy investors were at driving up the price. You can technically be right but still end up losing everything.
- VectorLock 6y agoThis harkens back to the extremely worn threadbare quote "The market can stay irrational longer than you can stay solvent."
- Aunche 6y agoRedditors made millions of dollars. A couple hedge funds lost billions. Where did the rest of the money go to? Other institutional investors. Nearly 10% of Gamestop is held by a mutual fund where experts try to pick undervalued stocks. https://money.cnn.com/quote/shareholders/shareholders.html?symb=GME&subView=institutional https://money.cnn.com/quote/shareholders/shareholders.html?s...