[HN Gopher] TikTokers Are Trading Stocks by Copying What Members...
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TikTokers Are Trading Stocks by Copying What Members of Congress Do
Author : mooreds
Score : 22 points
Date : 2021-09-21 22:19 UTC (40 minutes ago)
(HTM) web link (text.npr.org)
(TXT) w3m dump (text.npr.org)
| Cryptonic wrote:
| Everybody made huge stock gains in the last year, it was hard
| work to fuck up in that market. It's not a hint for inside
| knowledge if you ask me and not a guarantee for future gains to
| follow another ones portfolio.
| brundolf wrote:
| I'm not a market expert, but... my gut tells me this would have
| some kind of corrective effect, wouldn't it? Amplifying the
| inside information, allowing others to capitalize on it, would
| even out the unfairness of the privileged position in some
| roundabout way, wouldn't it?
|
| Obviously scaled by the number of people actually doing this, and
| with how much money
|
| Or- would it have the opposite effect? Would it actually give
| even more money to the congresspeople?
|
| At the very least it should raise _awareness_ of the problem by
| amplifying its impact on the market
| tablespoon wrote:
| > I'm not a market expert, but... my gut tells me this would
| have some kind of corrective effect, wouldn't it? Amplifying
| the inside information, allowing others to capitalize on it,
| would even out the unfairness of the privileged position in
| some roundabout way, wouldn't it?
|
| Wouldn't it just help the Congressmen's portfolios? A bunch of
| people buying after they do would help drive up the price of
| their investments.
| Hedgemaster wrote:
| And guess what? This following of "smart money" is in fact a
| self-fulfilling prophecy: after let's say Pelosi/her husband
| bought some stocks some large group of retail traders jump in and
| pump the price higher.. It likely has a negligible effect on
| highly liquid names like AAPL or GOOGL but might cause a
| significant price move for a smaller/less liquid names
| JasonFruit wrote:
| And by doing that, we're further enriching members of Congress.
| We should be taking a mass oath to sell any stock they buy.
| Then, of course, they'd only invest in potential opponents'
| corporations. It could turn into a real arms race.
| advisedwang wrote:
| Sadly the gap between trades and reporting may eliminate the gain
| from this otherwise smart strategy.
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(page generated 2021-09-21 23:00 UTC)