The news about certain stocks being targeted by online Reddit boards is not a new story, but the methods certainly are. In the “old” days of finance, shown through movies like Wall Street, Boiler Room, and The Wolf of Wall Street, there were certainly all sorts of unscrupulous individuals (and firms) using the public’s desire to get in on investing in stocks by offering them shares of up and coming companies that no one had heard of and didn’t really do anything. Many people lost much of their savings. As we know from all these movies, these practices were illegal.
Now, the fact is that the “public” is doing this, in plain view and telling everyone their strategy. It’s not much different than an analyst or fund manager going on financial media and saying what ideas they like and don’t (by the way this is part of what has these social media guys so upset). But what the people on the boards are doing is not, for the most part, investing. They are speculating. They are trying to manipulate the market to obtain a certain result and intentionally hurt others, LARPing the plot of Ocean’s Thirteen.
Investing, the way we do it, is about long-term objectives--building a down payment to buy a house, paying for college, funding our lives when we don’t want to or can’t work anymore, making sure our kids have a better life. We help people carefully plan, diligently save, and most importantly, manage risk so that they can make sure their money works for them to accomplish these objectives and others that matter to them. The path is not always smooth, but the point is that we see that time and evidence shows that this way is the best way, the most consistent way.
That way is well-diversified, broad-based, global investing. You can refer to some of our YouTube videos on our methodologies, but while some things might work for a moment, our philosophy should help guide you through a lifetime.
Russell D. Rivera, CFA, CFP® is the Founder and President of Voice Wealth Management (Voice) in New York, NY. He also likes to think of himself as a Personal CFO and Financial “Therapist” for entrepreneurs, young professionals, and their families. He helps clients make prudent financial decisions regarding spending, saving, investing, and planning while giving a voice to the individual client's financial priorities and experiences.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
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