A lot of industry insiders are judging this Gamestop thing very harshly but I think the best thing about it is that it’s opening a lot of people’s eyes to just how rigged the whole things is against ordinary investors. Out of hours trading and delayed pricing (unless you cough up a fortune) are just two of the annoying that things I’ve learnt about since joining Freetrade last year.
While you are basically right, I think we should not argue everything from a perspective of missing equality or victimhood. We all just operate in a capitalist system, that most people support. Nobody has any rights to trade on equal conditions, it’s a private product. It’s not ‘rigged’, you just get what you pay for.
Thanks for your comment. My understanding is that FreeTrade does not show outside hours movements on stocks as @safe has mentioned. In fact, the previous days FreeTrade did not show any outside hours fluctuation on BB.
I think it’s wrong to frame my point as ‘victimhood’. When it comes to ‘all things investment/stock market related’, I believe that the public delusion that the “free market” is a “free market” is being shattered.
We should probably stop calling them publicly traded companies, or at least put an little asterisk next to it, if the public aren’t allowed to play by the same rules.
Exactly. It’s either a free market or it isn’t. Now pretty much anyone can access capital markets with nothing more than a smart phone and a bank account, the realisation that there are structures that fundamentally undermine this concept could lead to to some big bumpy changes down to line.
I think we’re absolutely seeing the seeds of some of this with GME…
Free market refers to being free to buy and sell with whoever you choose to. And not even that is true, because we have policies and regulations. Free market in its libertarian extreme has never existed and will never exist.
But what’s more important here is that the financial markets are not free markets. They are a product created by organisations/people. This means that according to the free market, they can decide whoever they grant whichever right to use their product. So whatever happens here, may it be super unfair or not, is a free market in action.
This is as close to free market as it gets, it seems like you just didn’t fully grasp the concept.
I don’t mean any offence here, I generally enjoy both your posts.
I don’t disagree, but the broader point I was (badly) making is that @CashCow is right in that the dissonance between what people expect and what people get now they can finally access capital markets with so few barriers be they social, technological, financial or otherwise really does have the potential to upset the apple cart as we’re seeing irt. I am absolutely staggered by how quickly this has escalated from essentially niche r/ to everyone and their pet chinchilla taking a bite.
On capitalism, I’m of the Adam Smith school, so I’m all in on the importance of well regulated markets (I work in EM debt(!)), and outright reject the fantasy of libertarianism. While it’s normal and fair that different participants have varying amounts of influence and leverage in a given market, it should not be acceptable that markets are undermined by marginal behaviours or illegal practice. In well regulated markets, undue influence or emerging practices that undermine the market as a whole should also be throttled.
Markets that operate within these bounds are my definition of a free market. For as long as you have people in the mix, the threat of activity that undermines this will always remain. You need robust, dynamic regulation that keeps apace with these big shifts we’re seeing, but in any good capitalist system, regulation shouldn’t stymie innovation, so it’s a balance for sure. By the way, I think many (looking at me) use free market and capitalism synonymously, which is a bit of trap, as it doesn’t capture what late stage capitalism has ultimately become.
Apologies that my initial point was so crudely made and absolutely no offence taken. I appreciate the conversation!
Although it does feel as though the 3 of us are saying the same thing in 3 different styles. If we weren’t in lockdown then I’d say 'Let’s to the the pub so that you can both buy me drinks until I’m drunk enough to finally tell people how I really feel about AJ Bell"
Tbh as someone outside the world of finance, every encounter I’ve had with banks, estate agents, solicitors, brokers etc has been full of bureaucracy, waiting periods, fees and contracts. Then you log onto netflix for a film, grab a takeaway with your phone, get a same day amazon parcel etc. The difference is just staggering but they’re all the same so you’re screwed.