Recently, there has been a lot of misinformation in the public sphere about what is happening with GameStop in the stock market. I know, it is hard to believe mainstream talking heads and social media experts have their facts wrong. So, if you're curious about what's causing this phenomenon with GameStop, below is a video I recorded for our Tradesmart students.
Also, people have been quick to punish brokers like Robinhood, but in my opinion, that is backward. While I am not a fan of their platform, the "outrage" against Robinhood for stopping and limiting trades is misplaced. It is essential to understand that there are financial obligations brokers are required by regulation to maintain. Needless to say, this recent and unprecedented volatility on the GameStop stock has created some epic turmoil on their balance sheets.
Also, remember, Robinhood's customers are not hedge funds. They stand nothing to gain from stifling retail traders. Instead, their business is connecting retail traders with the stock market. Being upset with Robinhood is like taking out frustration on the local car dealership for making Ford executives rich. They are just connecting car buyers with car manufacturers.
If nothing else, this will give you something interesting to talk about with friends and maybe correct some misinformation people are using to get themselves all upset. Enjoy!
My initial comments on the GameStop event can be watched here.
My follow up comments can be watched here.