Squeezed Red 📈

Squeezed Red

For years, Wall Street and investing has been controlled by large institutional investors and politicians. Nowadays, things are slowly changing, with the advent of investing platforms such as Invstr who democratize investing, normal people can become their own investors.

Brokers are becoming more and more obsolete, and people are taking the reins of their financial future. One of the largest demographics taking advantage of this, is Gen-Z: any person between the ages of 6 and 24 as of this writing. As of now, Gen-Z is at most only 2 years out of college and starting to enter the workforce.

Gen Z’s formative years bridge the gap between the Great Recession and the coronavirus pandemic. The pandemic served as a gateway into the investing world for many. Public internet forums such as “r/wallstreetbets” on reddit have become favorites for Gen-Z as it serves as a place in which investors not only discuss investment but memes and a plethora of other unrelated topics. The size of this platform has been increasing rapidly.  As a member of Gen-Z as well as someone who has visited the forum, I find there to be a herd like mentality among investors.

This mentality did some damage recently, as Wallstreet played an integral role in the stock surge of GameStop, a stock that many investors predicted would fade out as e-commerce took over. One of the firms on wall street shorting GameStop, Melvin Capital, made their opinion on GameStop public. In response to this Wallstreet bets forced the stock upward as a direct response to Melvin capital, some intending to force Melvin to cover their short and stem their losses. This would of course boost the stock higher and appease a trollish desire, the investor psychology behind this is quite interesting. In fact, many of the investors on these forums pridefully refer to themselves, “degenerates.”

Whether or not you’re a fan, Gen-Z is taking an interesting approach to investing and analyzing the qualitative side of what is going on may be helpful.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

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Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying, holding or investing in digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC.

The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.