Wall Street bros in suits have been largely supplanted by a new breed of investor who thrums and throbs in the dark corners of the internet. If the spirit of the 2022 digital generation has any single gold standard, it’s this army of Reddit traders. It’s the trolls of Wall Street: a powerful, grassroots movement of young Americans for whom investment is in a state of upheaval. Or at least, that’s the theory, and it seems to be supported by the millions of Americans who have jumped into the mysterious and arcane world of stock ownership via the r/WallStreetBets subreddit. A case study in the power of community, information and shifting investment strategy in the internet age, the Robinhood traders are exciting and fascinating.
The corporate laying of giant egg at feet of Wall Street Bets resembles a modern-day David versus Goliath tale. With little more than the power of their smartphones and some balls, youngish neophyte investors had risen up to challenge the financial behemoths. This power of group investment strategies is the morale of the story – we can turn the tables on traditionally powerful market dynamics.
Possibly most exciting of all in this new investing world, many of those who until recently were largely onlookers to the financial markets are now participating. Countless ordinary people, or as we formerly liked to call them, retail investors, are making trades on commission-free platforms that also provide them with practically endless amounts of information (and disinformation).
And if investing is becoming more democratic, where do we turn for discernment? Most of these neophytes ended up investing their pensions or savings based on what they read online – from the crowd – which included a lot of noise. The challenge in this new environment – and it is a challenge – is how to sift through so much information, how to make solid decisions.
This encouragement, and the opportunity for an informative inoculation at home, can’t be overstated. The subreddit r/WallStreetBets provides this kind of supportive environment as much as it does a battleground for investment methods. Members share dysfunctions, misfires and the business of learning to invest.
In turn, it redefined what ‘home’ really means: for a growing number of global youth, it is less a physical locale than a cybernetic marketplace where they can gather together with like-minded investors, mentors, and influencers at any time. The market is awake 24/7, serving real-time outcomes, chats and conversations, and even friendships that navigate the intricacies of the stock market together.
But as this movement becomes more established, we need to ask ourselves some serious questions about the ethics of this sustained, collective assault on the markets. At what point does community action shade into market manipulation? To what extent are we altering the global financial system – and with it, the overall economy – when our combined efforts affect prices in all sorts of markets?
It’s an adapting thing as the environment changes. You have to roll with the punches as the world changes and the investing environment changes to some extent, and always be trying to keep your ethics intact. You’re building a house on a hill, really, and so you want to build a hill, basically, that is a home to research, and it needs to be a home to a critical thinker, and it needs to be a home to a community ethic so it holds up to whatever punches are coming at you from whatever direction.
At the centre of this revolution in investing is home itself, an ever-growing frontier where we coalesce to share data, ideas and stories, driven by the same collective wisdom that made a village succeed long ago: there’s indeed strength in numbers, and in a digital age, that home is so much more.
At dawn on the global financial markets, the digital archipelago of these islanders is there, a new lighthouse for those who dare to brave the storms of stock trading. It is merely the beginning of one of the most significant shifts in how we think about money, investment and community over the next few decades.
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