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A comment on Reddit's Stock Threads Become a Must-Read on Wall Street. Parent comment

Re:Reddit's Stock Threads Become a Must-Read on Wall Street by CydeWeys on Sunday October 11, 2020 @09:10AM (#24745518)
The crazy thing is, /r/wallstreetbets is fully cognizant of this fact. They just do it anyway for the lulz. They egg each other into increasingly degenerate highly risky options trading, and huge losses are lionized just as much as huge gains.
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Re:Reddit's Stock Threads Become a Must-Read on Wall Street by lordgrenville on Sunday October 11, 2020 @11:32AM (#24746450)
Matt Levine calls this the "bored market hypothesis": people are investing purely for fun, in significant enough numbers to actually move the market.
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Re:Reddit's Stock Threads Become a Must-Read on Wall Street by whimsicalism on Sunday October 11, 2020 @02:02PM (#24747713)
Eh. If retail investors are investing in the same direction "just for fun" then the real institutional investors will just short their bet.
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Re:Reddit's Stock Threads Become a Must-Read on Wall Street by lordgrenville on Sunday October 11, 2020 @02:59PM (#24748137)
Unless the market can remain bored longer than institutional investors can remain solvent...
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Re:Reddit's Stock Threads Become a Must-Read on Wall Street by whimsicalism on Sunday October 11, 2020 @03:14PM (#24748241)
> Unless the market can remain bored longer than institutional investors can remain solvent...

Don't let nit-picky facts like that institutional investors control substantially more capital than retail investors get in the way of a good narrative.

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Re:Reddit's Stock Threads Become a Must-Read on Wall Street by dralley on Sunday October 11, 2020 @08:52PM (#24750454)
Tell that to all of the institutional investors that have lost money shorting Tesla.

No, there is no good reason for Tesla to be valued the way it is - but there is no shortage of people willing to buy it without putting too much thought into the price, either.

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Re:Reddit's Stock Threads Become a Must-Read on Wall Street by marketgod on Sunday October 11, 2020 @09:22PM (#24750603)
Tons of good reasons. My model says $TSLA should be $1,000 a share and is undervalued. It should be there for March and even earlier. $5,000 in a decade.
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Re:Reddit's Stock Threads Become a Must-Read on Wall Street by apexalpha on Monday October 12, 2020 @02:52AM (#24752045)
haha, are you on the wrong site?
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Re:Reddit's Stock Threads Become a Must-Read on Wall Street by cvhashim on Monday October 12, 2020 @06:54AM (#24753168)
Gambling is a disease
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Re:Reddit's Stock Threads Become a Must-Read on Wall Street by blueside on Monday October 12, 2020 @02:10PM (#24757476)
But it's the only disease where you can win a bunch of money from it
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Re:Reddit's Stock Threads Become a Must-Read on Wall Street by tacocataco on Monday October 12, 2020 @10:44AM (#24754821)
Not if you win all the time.
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