/r/wallstreetbets vs. WallStreet: It's not about the money anymore!!
(3 Min Read)
Rarely do we get an opportunity to witness a battle between David Vs. Goliath. What we are witnessing right now (over $GME) is Davids (/r/wallstreetbets) vs. Goliath (the WallStreet). And one more thing, this is not a battle; it’s a WAR.
For years, Wallstreet has been manipulated by the big hedge funds. High-frequency trading [1] [2], frontrunning, dedicated fiber channels between exchanges, and media manipulation are just a few publicly known examples of Wallstreet's manipulation tactics to cheat and get ahead. These hedge funds only care about money and they buy/ruin everyone/everything that stands in their path.
An individual investor never stood a chance.
With COVID, these hedge funds got bigger, bolder, and brasher. While people suffered and struggled to pay their bills, these funds raked in the money. To the point, they thought they rule the world.
With their heads in cloud nine, hedge funds tried to kill GameStop ($GME). They tried to squeeze it so much that it would suffocate and die. They didn't care about the people who will be out of jobs, unable to pay their bills, or even survive. Blinded by greed, all they care about was money.
Little did they know the power of people united under a common cause. They underestimated the strength of a common man—a common investor who was and always has been the underdog. But every dog has its day.
Never in their wildest dreams, the hedge funds would have thought this day would come. The tables have finally turned as the hedge funds try to gulp in their last breath of air.
/r/wallstreetbets have shown to the hedge funds and the Wallstreet that the common investor cannot be ignored or underestimated.
People who are watching this war from the sidelines may think it's about the money. Honestly, it may have been about money initially, but now it's not. Now it's about getting back at Wallstreet. Making the big man pay. It's now a movement—a movement to drag hedge funds down from their clouds and smash them into the earth.
The hedge funds think they can scare people into selling. They are trying media manipulation again, calling in favors from other hedge funds, making government bailout request, and everything in-between to scare a common investor. But, a common investor can now see through these lies.
It's surprising that of all people, Wallstreet forgets this famous quote:
"The market can stay irrational longer than you can stay solvent."- John Maynard Keynes.
This is as true for hedge funds as much as its true for the common investor.
What Next?
Most likely, the government and the SEC will try to step in and save hedge funds. They may save the specific hedge funds, but they can't save them all.
Everyone on Wallstreet has a big ego. Other hedge funds don't think it can happen to them. They will try these shenanigans again. They will make a mistake, and they will be like a deer caught in the headlight.
A common investor has tasted the blood of hedge funds, and they like it. They are going to make these hedge funds bleed.
I honestly don't believe that people are going to sell their positions on $GME stocks. As I said, they are not in for the money anymore. They are fighting the good fight, and they have the potential to win this WAR. And they could not have picked a better stock even if they've tried. GameStop's company slogan is finally fulfilling its destiny.
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Disclosure: The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.