It is said in the Bible that David would be no match for the towering behemoth that was Goliath. However, against all odds, the small David fell Goliath with one stone from his sling shot.
As such, the same thing happened Thursday. Investors on the reddit page, WallStreetBets took on hedgefunds trying to short GameStop stocks. As a result, many personal investors put money into GameStop, effectively short squeezing the stock, bring a stock that at one point was valued at $4, to one that was valued at $400.
This was a momentous occasion in the history of Wall Street because never before has personal investors tried to interfere in the investment actions of hedge funds on Wall Street. This prompted a back and forth between the two forces, essentially Wall Street vs Main Street. Multiple high profile figures, most notably Elon Musk has gotten involved in the whole debacle.
People flocking to GameStop @verge
So what does this mean for the future of personal investing?
The events that transpired opened the gate for a large presence from personal investors in the stock market in the future. For many, this was the first time people have ever really invested in stocks.
Speaking personally, I was not really into stocks before the GameStop event. During and following the whole situation, I was inspired to invest more into stocks such as AMC, Nokia, and iShares Silver Trust. I am also more aware of the movements of the stock market and to analyze the strength of different stocks and companies.
The situation with GameStop should serve as an example and an inspiration that normal everyday people can get involved in the stock market and have an effect on it.
I think it is safe to predict that more people, especially young people will realize the opportunity in investments and will put aside more of their money into stocks and will be more aware of the movements in the economy and stock market.