WallStreetBets Across The World: The Past, The Present, And The Future

Therefore, while one could wrongly assume that due to the population of China, there are more individual active and financially savvy traders, actually there are high chances that there are fewer of them in China as opposed to the USA, but the ones who actively engage in the market have much greater capital available to them (and yet they are not HNWI or UHNWI), therefore have the power to affect markets.

Therefore, to conclude, yes WSB is nothing new to Chinese people. However, yes, the methods used in China and the types of people engage are different.

The Present: WSB in the West

Total market cap: $50.8 trillion Average retail portfolio: $12,000 People investing in stocks: 54 million (16.5% of total population) Retail share of capital market: 25%

Due to the reason that the WSB with GME, AMC and others, was well described by many journalists, there’s not so much need to repeat what has been said before. However, we could briefly discuss what the event itself means in the social context.

On one hand, we have a relatively small group of MBA, CFA, and other flashy titled professionals who manage money for large institutions and international UHNWIs. It’s ironic at the same time that the employees of the funds can hardly be considered as HNWIs themselves, apart from a couple of MDs or VPs. On another hand, we have a large group of relatively “poor” people according to Wall Street standards, who yet represent the majority of low-to-middle class population. The people who lost hope in society, government and faithful world. These are the same people who are commonly ignored by the mainstream media, who are ignored by the major politicians serving the generously paying financial institutions, and people who either missed or participated in the rise of Bitcoin.

While WSB by no means an entirely American or Western community, the majority of people yet represent Western society.

For decades, people had no hope as they were forced to follow the rules of the “big boys” who were fortunate enough to attend prestigious MBAs, but the COVID-19 pandemic and Trump’s stimulus checks, together played their role. With the global virus many people lost their jobs, and without the near-coming economic recovery had no prospects but to bet their future on the capital markets, which were continually going up with Fed keeping pumping money into the markets.

Fig.2: Retail money funds are at historical high levels surpassing the previous crisis levels

While many WSB participants are clearly more financially savvy than the “average Joe”, they simply had no idea of the power they collectively were holding. Therefore, with the stimulus checks, no hope left, markets kept raising, and Keith Gill clearly explaining the possible process of short squeeze led us to where we are now…

Now, once the people “tasted the blood“, they will not give up anymore. Given the reactions from the brokers, and other fund managers, the situation just got worse – all of them are on the radars of common people now. All of them participated in financial crimes against people and society. And all of them had betrayed the hopes of common people. Therefore, GME was among the first most notable examples in the West, but will not be the last.

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