Monday, March 29, 2021

Is the Stock Market Rigged? Is Rain Wet?

More than 50 percent of U.S. investors believe the stock market is rigged, according to a Bankrate survey. When you look at the wild price swings of a stock like ViacomCBS, exacerbated by massive trades that backfired on a family hedge fund and shook the investment banking world, the obvious question arises:

Why isn’t it 100 percent? 


Jim Gust said...

The wide price moves in Viacom prove that many investors are really gambling on stocks, not investing in them. I didn't see "rigging" in the WSJ article you linked to.

Compare to GameStop, where it looked like trading was suspended to protect some big hedge funds.

In the short term, I do agree that there is some questionable game playing. In the long term, I don't believe the market is or can be rigged.

JLM said...

Because massive ViacomCBS purchases were shielded from regulatory view by the use of swaps, they might involve "rigging." But yes, for long-term investors, short-term sound and fury signifies little.