Dumb Money Remains Dumb
Wait, what? So the prevailing narrative that a band of populist Reddit traders rose up against Wall Street forcing a short squeeze by professional hedge fund managers on GME , who were then forced to run and cover their negative bets or risk catastrophic losses wasn’t true? I’m shocked I tell you, shocked!! (CNBC)
The rookie investor “vigilantes” grabbed the most attention by being all over social media, posting screen shots of their positions and crucifying Robinhood and other brokers when the firms were forced to limit trading in the high-flying names. The membership of Reddit group WallStreetBets has rocketed to 8.5 million subscribers.
However, it’s possible the noise from this crowd caused most to overlook Wall Street co-opting this trade to make a fast buck as well, data shows.