Saskatoon / 650 CKOM
Jan 28, 2021 3:33 PM
There’s a lot of education involved to try and understand the speculative trading that has taken the American economy by surprise this week, especially if stock markets aren’t your thing.
Riley Sittler, an investment adviser with PWM Private Wealth Counsel and IA Private Wealth, is here to help.
A group of users on the forum-based website Reddit targeted large hedge funds looking to bet against failing companies, the most popular of which has been gaming retailer GameStop.
“The community is effectively banding together, purchasing these stocks, rising the prices of these stocks higher and higher in order to squeeze these hedge funds out to the point where they’re effectively compelled to purchase the stock, close out the short positions, which will shoot the stock higher and higher,” Sittler said.