The Rabobank Research Team, in its daily report, offers his take on the recent drama over the broker’s short-squeeze and Robinhood, deciding all trading in GameStop and a few other key stocks were to be sell only.
Key quotes
“On one level this is indeed Game Over. The House wins. The Empire Strikes Back. ‘Sanity’ prevails. And, yes, we should not be encouraging retail investors to manipulate markets and pile into obvious bubbles with stimulus cheques “because markets”.”
“However, on another level this is Game On. The retail horde are not going anywhere, and may have no day jobs to go back. They have been defeated here, but can pile into any stock or asset they choose, forcing brokers or regulators to shut down trading, making life hard for The Street, and a mockery of the system. Moreover, they have political support: when AOC and Ted Cruz and Donald Trump, Jr. all agree the system is rigged, you know something is happening.”
Read: Brokers’ restrictions on GME and AMC set a dangerous precedent – FXStreet Editorial
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