GameStop, short-sellers, Reddit rebels and Wall Street’s wonky plumbing

What was the furore over US retailer GameStop really about? Is silver the next big social media-driven trade? And what does any of this mean for sensible long-term investors? John Stepek tries to unravel the story.

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In short, not very. One angle that has been pored over and amplified by many in the press is the idea that Reddit users are angry about 2008. We’ve already noted above that the “rebellion” started as a value investing thesis, but some posts on the website do point to a generalised anger about bailouts in 2008 and a re-run of “Occupy Wall Street”. Yet hedge funds and short-sellers are the wrong target for this rage against “too big to fail”.

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.