“The term ‘meme stock’ comes from the traditional meaning of a digital meme or a concept that spreads rapidly from person to person via the Internet” — Paul Ebeling
Just 6 months ago professional investors ridiculed the little guy, then they got hammered.
We are seeing a shift that augurs consumerization of technology. Meaning that the f1sr st wave of technology was the IBM mainframe managed by a handful of specialists who held sway over vast swaths of information technology.
Fast forward to today where with the advent of the iPhone and software like search and apps and the power dynamic has shifted from an opaque, closed system controlled by an elite to more of a transparent market where the crowd rules.
We are not judging whether good or bad, and to be sure, there will be pain and woe and triumph) as this plays out, but this is a retail revolution with staying power.
Today, the retail participants have access to as good if not better information as the institutional investors.
They have the ability to trade at lightning speed at no commission. Most importantly these guys are connected. When going into a stock they have the same type of power a large institutional investor has.
What history tells us is people who have power do not give it up voluntarily, you have to force them out, and the SEC will soon be still born. So, big retail is here to stay.
As I have be say and writing about for the last 5 yrs the power is the network.
Meaning: the retail revolution is really driven by a technology enabled network, which is empowering the retail investor, to a degree at the expense of the institutional investor.
Have a positive week, Keep the Faith!