‘Dumb Money’ Exposes the Baffling Allure of Bad Investment Advice

https://www.nytimes.com/2023/10/01/opinion/dumb-money-movie-gamestop-stock.html

by paulpauper • 3 years ago

4 1 3 years ago

https://web.archive.org/web/20231002042814/https://www.nytim...

"Retail investors have a well-established track record of destroying their own wealth. Studies have shown that individual traders somehow have the opposite of skill — they manage to do worse than they would by picking stocks at random."

These finance guys don't understand what's really happening. The retail investors are high stakes gambling on purpose trying to get instantly rich because some guy on whatever telegram, discord or whatever is bragging how he got rich gambling on some ridiculous asteroid mining futures stock. No amounts of 'but look at this data...' will ever change their mind. No amount of telling them that low latency trading outfits like Citadel receive these retail order books in real time and then buy/sell the stock to retail traders making a profit, literally sniping their trades, will make them change their mind either.

Nobody wants to invest anymore in something that returns modestly in 30+ years they want to be rich now then run some YouTube/TikTok channel how you too can become rich like they did gambling.

‘Dumb Money’ Exposes the Baffling Allure of Bad Investment Advice

Related Stories