Anybody else following the saga this week that is pitting small stock buyers versus hedge funds companies? It's been pretty interesting watching it play out.
For those not following the stocks, the short version of it is that a whole bunch of people are buying small amounts of certain stocks to drive the price of those stocks up which is causing hedge fund companies to go nuts because some of them have obligations to buy back a whole bunch of those stocks at what are now hugely inflated prices causing them to lose money. It's happening at large enough volumes that it is catching the attention of lawmakers and will likely lead to some type of changes which is also causing controversy because any changes would be in favor of large funds and not the small time investors.
Usually I pay no attention to a lot of these fleeting news cycle items but an interview this morning on Yahoo Finance TV caught my attention. They were interviewing a bunch of folks who were all trying to justify why the public (as in you & me) should be restricted in how we buy & sell stocks and one of the people was Megan Horneman representing a company by the name of Verdance Capital Advisers. Below is an exact quote.
I ended up using the DVR rewind to go back and listen to it again to make sure that I heard it correctly. Yep, that is exactly what she said. The next sentence from her was about how only trained & professional traders should be in the market.
One part of my brain is thinking "Hey, wait a minute, I wonder if this will affect any of my 401K investments? " but, seeing statements like the one above combined with the shenanigans of companies like Citadel and RobinHood today along with some recent troubling (to put it mildly) political divisions, also makes me think "Yikes, the US is plowing full-steam ahead towards an implosion on a major scale. "
(EDIT: Not a political post!)
For those not following the stocks, the short version of it is that a whole bunch of people are buying small amounts of certain stocks to drive the price of those stocks up which is causing hedge fund companies to go nuts because some of them have obligations to buy back a whole bunch of those stocks at what are now hugely inflated prices causing them to lose money. It's happening at large enough volumes that it is catching the attention of lawmakers and will likely lead to some type of changes which is also causing controversy because any changes would be in favor of large funds and not the small time investors.
Usually I pay no attention to a lot of these fleeting news cycle items but an interview this morning on Yahoo Finance TV caught my attention. They were interviewing a bunch of folks who were all trying to justify why the public (as in you & me) should be restricted in how we buy & sell stocks and one of the people was Megan Horneman representing a company by the name of Verdance Capital Advisers. Below is an exact quote.
Megan Horneman - Verdance Capital Adivisers said:Anybody that has an iPhone now can invest in the stock market. This is dangerous.
I ended up using the DVR rewind to go back and listen to it again to make sure that I heard it correctly. Yep, that is exactly what she said. The next sentence from her was about how only trained & professional traders should be in the market.
One part of my brain is thinking "Hey, wait a minute, I wonder if this will affect any of my 401K investments? " but, seeing statements like the one above combined with the shenanigans of companies like Citadel and RobinHood today along with some recent troubling (to put it mildly) political divisions, also makes me think "Yikes, the US is plowing full-steam ahead towards an implosion on a major scale. "
(EDIT: Not a political post!)