Breaking my rule of not talking work on Twitter.

I’m a financial editor. I’ve been doing it for a long time. (You can look me up; whatever.)

All opinions below are mine own, not my company’s. /1

I was at an investment bank for the late 90s tech boom… and crash. I was at a bond rating agency for the subprime boom… and crash. So I’ve seen some stuff. And I’ve heard even more. /2

One rule has never failed me: If even the editor thinks an investment sounds chancy, it’s a fucking bad investment.

So it’s with a practiced/jaundiced eye that I’ve been lurking on a certain reddit board for some days now.

Oof. /3

So much bad advice. So many people treating a stock like a lottery ticket.

(One guy posted that he had used a $40K dental school line of credit to buy stock. I wanted to get a restraining order to protect him from himself, because that is life-changing stupidity.) /4

So much conviction that if they just hold on to a stock (which has already lost a week’s gains), hedge fund brokers will be wearing barrels and jumping out of windows. /5

Of course, this is buttressed by media that continues to position the story as David v Goliath. It gets clicks for news orgs and makes dumb investors feel good. It’s also deceptive and delusional. /6

At the end of this, a few people will make some money, sure.

But a lot of people who can’t afford the hit… will lose.

Meanwhile: The people who were rich at the start will still be rich. This won’t break them. /7

No, no—don’t argue with me. It won’t.

You have NO concept of how unbelievably big and squeezy and plush their financial cushions are.

The funds will take the hit, rebound, and be standing within weeks. /8

As the stock continues to slide, I’m seeing more conspiratorial-thinking posts on the board. Inevitable, not helpful, and pretty much in step with the times. No telling what dark paths THAT will lead to… /9

In the meantime, kids:

Stocks are not a lottery ticket.

Educate yourselves with actual education.

Don’t let randos on the internet try to tell you to hold a stock that you can see is deflating, cent by cent.

And really, don’t take advice from randos on the internet. /10

Except me. I’m an editor. You can trust me.

/end