Although I am against coordinated buy waves by small investors because the end is quite bad.
In time, there will be no more new fools and the stock collapses- Taking down whoever held those stocks-
So yeah, don’t ride the wave because it might take you down literally-
However, what Robinhood and other brokerages did to save the hedge funds is bad. I mean real bad.
Robinhood and other brokerages limited the buying of Game Stops (GME) and other stocks that were on a super short squeeze to save their best clients (e.g. hedge funds).
So much for democratizing finance- Yup, now you know who Robinhood cares about- Of course, I knew this all along- But now they have to admit it in PUBLIC.
The limitation of certain trades is a real affront and assault to the average investor. Wow really? So much for freedom and leveling the playing field for everyone except hedge funds.
Robinhood has already been sued and now AOC and Pelosi may jump on Robinhood as well. Democrats are known to be vicious and given their lack of popularity, they are extremely happy to sacrifice the brokerages for more votes.
This is going to get ugly. Robinhood and other brokerages will likely to lose the lawsuit. The Democrats will go on a crusade type investigation. Of course, the hedge funds will be safe because they donate to Democrats.
But the brokerages will be in some pain. Robinhood will be the one that gets it. Because other more traditional brokerages had been lobbying for years so they will find some wiggle room. Not Robinhood.
The worst is not even over…Expect lot of people to switch to other brokerages, I am sure a brokerage that did not restrict access will use this opportunity to say that they are true bastion of financial democracy.
Robinhood is screwed. And that is because they betrayed their core customers or what it says it stands for.
The only way they may appease their customers if they give some shares to their users when they go public (IPO). But right now even that won’t calm down the anger. I am sure there is some forum already coordinating which brokerages they will use to punish those that limited trade on GME.
For me, I don’t follow the crowd because usually they will trample over you. A stampede will kill you. I have been long gold and silver miners and REITs so I will just hold on to my long positions. I will continue to swing trade.
And I will try to find some undervalued stocks that can create value for me and the world…very hard though.
I want something like Simulations Plus (SLP). Helping the world through drug simulation and great market performance. But even SLP is overvalued…so can’t get in there…
If anyone has good meaningful picks, please let me know-
I will also update it on the blog if I find a new good pick.
Thank You Jesus for a blessed day. Let us always be thankful and give You all the glory Amen-
Rejoice at all times. Pray without ceasing. Give thanks in every circumstance, for this is God’s will for you in Christ Jesus.
1 Thessalonians 5: 16-18
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