

Pious sentiments about ‘democratising finance’ and sticking it to the rich guys may come badly unstuck for small chat-room investors who sent share prices soaring recently for a moribund Gameshop and lacklustre AMC theatre group. In the process they cost short-sellers a small fortune, before moving on to send the price of silver soaring to its highest level in a decade.
None of the moves had much to do with underlying economic fundamentals which left analysts fearing a sharp reversal for investors similar to the dot-com craze tanking in 2001 and the housing market collapsed in 2008.
On Monday, shares in GameStop, the struggling retailer championed by Reddit investors declined by 30 percent, sliced in half from their peak but still over 1,000 percent higher than where they began the year. One broker said “It’s pump and dump in a totally new, viral format and there are huge risks that need to be looked at right now.” He said it had the markings of a market mania that historically ends in big losses for small traders.
Robinhood, a financial services company, whose game-like approach facilitated much of the rise in GameStop and AMC shares, then had to pull back sharply sparking off criticism. Robinhood may struggle to hold on to its outsider identity as it is forced to play by the rules, industry participants say.
Elizabeth Warren sounded a note of caution. “We actually don’t know who all the players are in all this — whether there’s big money on both sides.”
Robinhood was founded 18 April 2013 in California by Vlad Tenev, a Bulgarian-American, and Baiju Bhatt, an Indian-American. It has a fiery, adventurous, pro-active and go-getting Sun Mars in Aries; with an excitable Uranus Mercury also in Aries square Pluto amplifying its innovative, not to say disruptive streak in bucking the status quo. There’s also a more materialistic Venus in Taurus opposition Saturn in Scorpio, so making money will be in its DNA.
This year they will be seriously jolted from mid to late March with tr Uranus opposing its Saturn. But it’s 2022/23 when they will run into the buffers as tr Pluto squares their Mars and Sun to bring them to a grinding halt. With Solar Arc Sun Mars opposing the Saturn in 2023 as well.
It’s not that the finance big boys don’t need a serious sorting out but this could end in tears.