Robinhood, a financial services company’s CEO, Vlad Tenev opens up about the situation that has been unfolding since the past few days between the Wall Street bets and hedge funds. According to him, those who have been “talked down to” are now getting a voice to speak up. In short, retail investors are getting empowered as opposed to the “establishment” that has been systematically shunning them away.
The year-long coronavirus pandemic, the delay of the stimulus checks, the market crash, and the instability surrounding the future of the US Dollar has made the common people look for desperate means and disparate solutions. What we are witnessing in the witty exchange between the Redditors and the Hedge Funds are something that can be directly linked to the trigger points that happened last year. However, Robinhood claims that the history goes way back.
Robinhood’s CEO Says “Inequality” Is At The Heart Of Investing
Robinhood’s CEO, Tenev explains that there is another reason for the day traders going heights to talk back to the Wall Street hedge funds, i.e., the growth of commission-free trading and the ability to own half a stock or even less. These situations have combined to make the time ripe for first-time investors or day traders to come to a position of collective challenge against Wall Street.
Robinhood has also seen an increase in its educational sector where first time investors are seeking more knowledge to understand the nitty-gritties of trading.
What has been happening is a reflection of the key problem at the heart of investing that is “inequality”, elucidates Robinhood’s Tenev. There is a boom in retail investors and those who have been present in the business felt like they have been talked down to by the “establishment”. This is what can be seen to be challenged in the events that have been unfolding with the extraordinary price hike of GameStop stocks that has increased by 1000% within a few weeks.
