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The $GME story is taking over our lives because it clearly represents something bigger about society than just a ragtag group of pirates hijacking the stock market.
I tried to condense all the takes from the last week into 4 theories that help explain what’s going on. -->
I tried to condense all the takes from the last week into 4 theories that help explain what’s going on. -->
1. The “stick it to the man” theory
This theory suggests that these traders are motivated primarily by their disdain for “suits,” the longtime wardens of Wall Street, who exploited the little guy to get filthy rich.
This theory suggests that these traders are motivated primarily by their disdain for “suits,” the longtime wardens of Wall Street, who exploited the little guy to get filthy rich.
2. The "everyone's super bored" theory
Without much else to do during the pandemic, people have turned to the stock market as a form of entertainment.
Last summer, individual investors accounted for roughly 20% of stock market activity on average, up from 10% in 2019.
Without much else to do during the pandemic, people have turned to the stock market as a form of entertainment.
Last summer, individual investors accounted for roughly 20% of stock market activity on average, up from 10% in 2019.
3. The "It's all because of Robinhood" theory
The rise of the amateur investor can be traced back to Robinhood, the app that pioneered no-fee trading and empowered individuals to influence the stock market like never before.
The rise of the amateur investor can be traced back to Robinhood, the app that pioneered no-fee trading and empowered individuals to influence the stock market like never before.
4. The “memeification of society” theory
The behavior of Reddit’s trading army is identical to other online communities like 4chan that engage in “astroturfing” campaigns. These days, you can just meme anything into existence.
The behavior of Reddit’s trading army is identical to other online communities like 4chan that engage in “astroturfing” campaigns. These days, you can just meme anything into existence.
