“The tour we’ve taken through the last century proves that market irrationality of an extreme kind periodically erupts — and compellingly suggests that investors wanting to do well had better learn how to deal with the next outbreak.”
Irrational markets are a given these days. For retail, fundamentals often do not drive investment as much as momentum and hype. And yet, with the introduction of the internet, retail investors have a chance at accessing as much information as professional traders. With this information, strong, calculated decisions can be made.
Once these decisions are made, of course, they are posted to Reddit, an internet forum with subforums, including those directed at investing. It seems simple — yet profound effects on the market are observable. With these new communication media, investors have unlocked the market-playing capabilities that once only Wall Street insiders had.
Of course, it was a quick matter for the power to return to Wall Street once retail investors began to threaten its bottom line. Within days of a round of short squeezes driven by a subreddit and harming the bets of hedge funds, Robinhood, the effective retail ring leader platform, had halted the trading of several securities, including GameStop, AMC and others. Unfathomable as this would be in the past, it seems that Robinhood had decided that it knew what was best for investors.
As egregious as this overstep was, it is only a symptom of a larger illness.
All Money Held In Fiat-Denominated Assets And On Fiat Platforms Is Fraudulently Controlled
The only money you truly control is your cash. Even then, the physical U.S. dollars that you hold are constantly depreciating. Banks, creditors, money management applications (i.e., Cash App) — they’re all the same. Every single one requires you to place full faith in the custodian entity, not only to protect your wealth from outside interests but from internal…