Investment Firms Have Mixed Feelings on Reditt Stock Market Challenge

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Image via MayoFi on Unsplash.

Professional and retail investors are mixed in their reaction to the sudden surge of rebellion from Reddit chatroom day traders concerning the stock market, writes Eriin Arvedlund for The Philadelphia Inquirer.

 There was GameStop shares last week, silver prices on Tuesday. Investors are concerned about what comes next.

Brokerage firms are raising margin requirements transactions, making it more expensive to make speculative trades.

“That’s the most direct way. Higher requirements are logical as volatility is now higher,” said Wallingford-based Phil Gocke, who runs the investment advisory firm Opus Investments with partner William Wu.

The day-trading trend worries him as it hits other parts of the stock and commodities market.

 “It becomes worrisome when unrelated positions are liquidating,” he said. “We believe regulators should take action to keep market conditions from becoming disorderly and panic genuine investors.”

Others cheer it on as a blow against Wall Street billionaires.

 “It’s a great thing,” said Howard Lubert, founder of the Keiretsu Forum Mid-Atlantic chapter.

“What we’re seeing now is the ability for average Joe investors to gang up with thousands of people they don’t know except for being on the same platform,” Lubert said.

Read more reactions to the Reditt phenomena at The Philadelphia Inquirer.

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