Gamestop Mania Causes Chaos in the Stock Market
The US stock market was in a frenzy last week as retail traders from Reddit pushed the price of the Gamestop stock up 2,000 per cent in their desire to cause a short squeeze for short sellers and hedge funds at the big end of town. These retail traders created a flash herd on chat forums and Apps that caught the big boys unaware, which has caused concern for regulators and brokers. While everyone likes to make good profits, has the stock market changed and should we expect that this to be the new norm or was last week just a storm in a teacup?
In tonight’s Australian Stock Market show, Dale and Janine, in their no nonsense approach, will analyse what happened with the Gamestop stock, why it happened, the risks involved and whether this strategy is something you should follow or avoid at all costs.