A lot of Redditors hate the Reddit IPO | Reddit warned us that its users were a risk factor, and boy do they sound excited about shorting its stock.::Reddit seems like a likely candidate for a meme stock. But the actual reaction suggests that r/WallStreetBets isn’t going to send the stock to the moon.
This is a gross over simplification. Yes, rich people can have higher risk tolerance, but that doesn’t mean people shouldn’t be going long on index funds and otherwise safe, low risk investments for retirement with what they can afford to.
It’s not just risk tolerance. The very rich can manipulate the market in ways that the poor can’t.
You don’t need to manipulate markets to dollar cost average the S&P500 for 40 years and retire. This is a get rich slow scheme that’s worked since the inception of index funds.
Yeah, and some rich people may do that. But, other rich people aren’t satisfied with the returns of an index fund, so they’ll manipulate the markets to get higher returns.