We’re all familiar with the account of David versus Goliath in the Bible. A similar story has been taking place on Wall Street but with millions of Davids. Followers of Reddit, a social media discussion site, are buying up shares of troubled companies by the truckload and are causing a panic on Wall Street. Today, Kingdom Advisors President Rob West has the details. On the one hand you have a very large group of young, upstart day-traders, many of whom are millennials and younger people even down to Generation Z. On the other hand, you have the establishment professionals who manage large funds also hedge fund operators and short sellers. This last group are people who basically bet on a company’s stock price falling. But these two groups don’t get along. Up until now, the old timers probably haven’t paid much attention to the youngsters. But these young day-traders have always had it in for the Wall Street professionals whom they blame for causing big market downturns like we saw in 2008. So they feel they’re finally getting some pay back. This is all taking place on a certain Reddit page called WallStreetBets which has two million followers. They’re able to communicate with each other and to identify struggling companies that are likely targets of the short sellers. The day traders then buy options for those stocks. Options are essentially bets investors put on a stock, allowing them to buy or sell at a certain price. When that happens in large volume it can force the price of a stock up or down. Short sellers are investors who essentially borrow shares at one price hoping the stock’s value will fall. When it does, they settle the account at the lower price, keeping the difference as profit. But if the stock’s value climbs higher they lose money. So the hedge fund guys and the short sellers are losing their shirts right now and driving those stock prices even higher. They have to buy shares themselves to hedge their bets and minimize their losses. This is happening right now because of technology. Stock trading has undergone a revolutionary, major change by technology. No-fee apps like Robinhood allow armchair investors to use sophisticated tools like options that were once only available to the Wall Street elite. When you add in a platform like Reddit with millions of followers, suddenly a single post can affect the price of a stock. On today’s program we also answer your questions: --I have a savings account at my bank but hear good things about online banks instead brick-and-mortar ones. I want to improve my yield. What do you think? --How can I help convince my husband to stick to our budget and to not so frivolously spend the money? --In case I become disabled or go into a nursing home, what’s the best way to enable someone else to manage my CD, for example, or my checking or savings accounts? --My husband recently passed away. Our house is now in my name due to his death. However, the mortgage is in his name. Since my credit’s not good, I know I’ll be turned down to refinance. Income is tight. What’s my option? Ask your questions at (800) 525-7000 or email them at [email protected]. Visit our website at moneywise.org where you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.
How does your faith in Jesus influence your daily financial decisions? As believers, our faith must be the foundation of our financial stewardship, which is why we're excited to announce that the MoneyWise radio show is now Faith & Finance. Join Rob West and special guests as they address today’s financial questions with biblical answers. To be a part of the broadcast, call 1 (800) 525-7000 or you can email your questions to: [email protected]
Have we seen the worst of mortgage rate hikes? Are rates leveling off? What does that mean for the market as we head into the spring season? Those are all questions we’d like answered, especially if we’re in the market to buy a house. On today's Faith & Finance Live, host Rob West will welcome Dale Vermillion to help us find out what’s up with mortgage rates. Then Rob will answer your questions on different financial topics. See omnystudio. com/listener for privacy information.
It’s important to plan where you’re going, and financially, that plan is called a budget, which helps you decide where your dollars will go. But are there some dangers associated with budgeting? On today's Faith & Finance Live, host Rob West will talk with Chad Clark about the dangers of budgeting. Then, Rob will tackle your calls and financial questions. See omnystudio. com/listener for privacy information.
Each of us has an inner money manager. So, what happens if yours and your spouse’ disagree? On today's Faith & Finance Live, host Rob West will welcome Matt Bell to explain how couples who can reconcile differences about handling their finances avoid a lot of conflicts in marriage, and they do it by getting in touch with their inner money managers. Then Rob will answer your calls and financial questions. See omnystudio. com/listener for privacy information.
You might look like you’re doing fine on the outside, but how’s your heart these days? Perhaps it’s time for some introspection and some reassurance from God’s Word. On tpoday's Faith & Finance Live, host Rob West will talk about how we can do a financial heart check to make sure we’re living with the right attitudes when it comes to money and possessions. Then he’ll answer some calls and various financial questions. See omnystudio. com/listener for privacy information.
God’s Word speaks of the many blessings of marriage—companionship, comfort, and loyalty, to name a few. But did you know that some marital blessings are financial? On today's Faith & Finance Live, host Rob West will talk about marriage and the bottom line. Then he’ll take your calls and various financial questions.