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GameStop Controversy Creates Extreme Stock Market Volatility

stock market

A battle of red versus blue has commanded the attention of millions of Americans for some time now. But the spotlight has quickly transferred to a new battle:  Wall Street vs. retail investors.

While the conflict has been compared to that of David and Goliath, one thing is for sure, the trust in the stock market and the institutions running it is quickly depleting.

In short, a social media group with over 3 million subscribers, now known as the “Reddit army,” saw where Wall Street hedge funds were shorting the market by selling more shares of GameStop than the actual amount of issued shares.

What seemed like a sure winning trade to Wall Street institutional investors, was quickly ruined when the Reddit army decided to buy GameStop stock.

The statement, “there’s power in numbers,” held true as GameStop’s stock jumped from around $19 to nearly $347 in under a month.

This crushed the institutions that were betting on GameStop’s price decline and forced them to buy, driving the price even higher.

Institutional investors aren’t losing their own money. Instead, it’s their clients’ money– people like you and me.

We saw this similarly in the 2008 market crash. This stock market fiasco is a hit for hedge funds and it could drastically impact any American and their retirement assets.

Pension plans, which invest assets on behalf of average workers such as teachers and police officers, may hold large positions in hedge funds.

About 7% of state and local pension plans are allocated to hedge funds. Some allocate close to 20% of their overall portfolio.

The truth about Wall Street is once again out, but this time there are options. And after 2020, people are fed up.

If you believe the stock market is rigged, you don’t have to play. It is events like this that have Americans questioning their portfolio and seeking real assets like physical gold and silver.

Owning physical gold is not at the mercy of stock market manipulation and is one of the very few assets that hold real value.

A small group of unsophisticated investors just realized how much of an uproar they can cause in the traditional stock market. And Wall Street has been exposed yet again.

The extreme market volatility surrounding GameStop could very well be the beginning of a major shift in investing power.

Don’t let your savings be at the mercy of stock market manipulation.

Learn how to diversify and protect your wealth and retirement against the upcoming market volatility with assets like gold by calling American Hartford Gold at 800-462-0071.

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