It Was Goliath vs. Goliath All Along

It Was Goliath vs. Goliath All Along

February 11, 2021
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What's your "go-to" source for financial information?

"Family and friends" is the #1 answer given in the annual Retirement Confidence Survey. But a close second is search engines and other online tools, including online forums like the one that rose to notoriety in the past few weeks.1

As the "short squeeze" story is unfolding, it appears that individual investors played a smaller role than initially believed. Wall Street institutions were very active in those short-sell situations, and their trading seemed to be the main driver behind the volatile price swings.2

Regulators are digging into the activity, but some firms have concluded it was a battle between Goliath vs. Goliath, and David merely provided a narrative that captured the nation for several days.2

The Retirement Confidence Survey found that financial professionals are becoming a more critical source of information on retirement strategies. Many financial professionals have passed exams administered by The Financial Industry Regulatory Authority and are required to take continuing education courses to maintain their licenses.3

Some of the ongoing training focuses on regulatory, compliance, ethical standards, and other practice standards.3

So the next time you consider following a hot tip or hopping into an online forum, take a minute and consider your investment strategy's goals. But if you do get excited about an idea, please contact us. We'd welcome the chance to hear your thoughts.

1. Employee Benefit Research Institute, 2020 Retirement Confidence Survey

2. CNBC.com, February 5, 2021

3. FINRA.org, 2021

Any companies mentioned are for illustrative purposes only. It should not be considered a solicitation for the purchase or sale of the securities.

In order to sell short, you are required to open a margin account. Selling a security short involves greater risk, including the risk of unlimited losses in a position. Selling short is not suitable for all investors. Margin trading entails greater risk, including, but not limited to, risk of loss and incurrence of margin interest debt. Please assess your financial circumstances and risk tolerance before trading on margin.

Investing involves risks, and investment decisions should be based on your own goals, time horizon and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.