As GameStop’s stock whipsaws, going from a little under $20 at the beginning of January to $483 last week and to $90 this week, the dust has started to settle around exactly who has been left in said dust.
Though many, including Congressman Patrick McHenry, have seized on the “power to the people” narrative of the story, that little-guy retail investors organizing on Reddit and juicing the stocks was merely what far more powerful institutional investors do every day. Unfortunately, as we know from history, it won’t really be the giants who fall.
Watch as Spark contributor Tyrone Ross Jr, CEO of Onramp Invest, argues that the people who made the most from the Gamestop rally did so because they “knew to get off the train.” He calls for improved financial literacy in America as means to truly make the markets more “democratic,” a term Robinhood and other trading apps fan fin-tech startups have incorporated into their branding for bringing investing to the masses.
But without proper education for everyone in the language of money, as Ross calls for, who’s really benefitting from that power?