Munk Debate: When the stock market becomes a game

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Did GameStop help or hurt financial markets?

I’ve been in this business for four decades, and for the last two decades I have really been focused on enforcing the transition from passive investing to active investing. As an advocate for the active investor, I build technology and content for them. Everything our companies do focuses on the retail investor and turning them into an active participant in the markets.

GameStop was able to show the public how fast the markets can normalize and how efficient they are. The way the market-making firms were streaming quotes and how accessible the market was for everybody with a decent brokerage firm is proof of their extraordinary efficiency. I love when people get into the stock market. I started on Wall Street in 1991. I’ve seen iterations of fits and starts, the dot-com bubble, the mortgage crisis and the global financial crisis that followed that. What scares me is that trading frenzies like GameStop turn people off from the market. If the average age of the Robinhood investor is 31 years old, that means that they were 16 or 17 years old during the global financial crisis. They’ve only seen a bull market.

 

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