That's what happens when you spend a decade printing a lot of money Value becomes diluted
The value of what? The US Dollar? Are you claiming some kind of runaway inflation? Because I don't know of any economists who agree with that.
Robinhood S-1 IPO
81–90 of 404 posts
Re: Robinhood S-1 IPO
#82buy buy buy. Bullish! Opinion: * RH will drag the industry to T+0 settlement, thus breaking wall street shenanigans with 100%+ short selling. Inevitable to see the merging of on-chain settlement with traditional stonks. * RH has the largest amount of Dogecoin AUM globally (8.7B $USD equiv) * RH has a lot of bitcoin, ether and other coins AUM. * RH will eventually be the biggest broker in the US (world)? * RH encourag…
> “ lots of first time investors (18-24), who over time will grow to be big investors” Or will be burned by the next prolonged downturn and exit the market permanently.
These people have no other option but to buy stonks and crypto. Their dollars lose value every year, and even a market downturn will look attractive vs fiat inflation.
Bull market for the next 100 years!
Re: Robinhood S-1 IPO
#83Re: Robinhood S-1 IPO
#84“ A substantial portion of the recent growth in our net revenues earned from cryptocurrency transactions is attributable to transactions in Dogecoin. If demand for transactions in Dogecoin declines and is not replaced by new demand for other cryptocurrencies available for trading on our platform, our business, financial condition and results of operations could be adversely affected. For the three months ended March…
What's most ridiculous about this level of crypto trading volume on Robinhood is that you don't even own the crypto you trade there. You can't use your own wallet, you can't transfer it to your own wallet. Robinhood holds it; you're just gambling on their holdings.
That's not ridiculous, that's the primary purpose of crypto
Re: Robinhood S-1 IPO
#85Re: Robinhood S-1 IPO
#86I understand that many give Robinhood crap because it is not "sophisticated enough" or because of the Gamestop fiasco. Although many startups like to claim that they are "democratizing [x]", I honestly believe they did it. I have many friends that never traded before, and after they got their Robinhood account they feel comfortable enough to do it often. Even myself, who used to only trade a couple of times a year, s…
I have read anecdotes that their ToS is geared towards them owning the securities because they pool purchases. Their business model is the brokers are the ones that actually pay them and potentially hold the securities.
Also, from their recent "Systemic Supervisory Failures" [0]:
> Between 2018 and late 2020, Robinhood experienced a series of outages and critical systems failures. The most serious outage occurred on March 2 and 3, 2020, when Robinhood’s website and mobile applications shut down, preventing Robinhood’s customers from accessing their accounts during a time of historic market volatility.
In the event of a large market downturn could you actually transfer that 60k elsewhere or for that matter, even access the platform to exit positions?
Payment for order flow means you are likely in line behind which ever Wall St firm is paying for that order flow. Yes that is illegal for them to do (called front running I believe) but the fines they pay are usually tiny compared to the revenue.
[0] https://www.finra.org/media-center/newsreleases/2021/finra-o...
Re: Robinhood S-1 IPO
#87Earlier quoted context omitted.
this logic makes no sense. did you get this from peters schiff.com or something? Tech stocks surged in the 90s despite the fed raising rates and the treasury runing a budget surplus.
Why can't low interest rates be good for tech stocks, but also all the innovation in the 90s be good for tech stocks? It appears like you're saying that only one of these can possibly be good for tech stocks. Why not both? How do you know tech stocks couldn't have done much better in the 90s under different monetary conditions (ZIRP and a Federal Deficit of 35% of GDP)?
speculative bubbles are independent of monetary and fiscal policy. if someone thinks they can make 100% returns on their investment,what difference does 0 vs 2% interest rate makes? Look at the housing market in the 2000s , which surged despite interest rates being high.
Re: Robinhood S-1 IPO
#88Earlier quoted context omitted.
> “ lots of first time investors (18-24), who over time will grow to be big investors” Or will be burned by the next prolonged downturn and exit the market permanently.
Does this remind anyone else of the high APR (20-30%) credit cards offered to college students? I remember a table set up outside the main dining hall where they pitched getting started building that credit history ASAP. Now it's about building that portfolio ASAP and offering it to the most risk-tolerant age demographic. Subtly updated buying whatever you want on credit and worrying about whether you could afford it…
No? Because high APR cards are a trap to leech money from the young -- eg debt. Investing in growth assets like stonks is building assets.
Very very different things!
Re: Robinhood S-1 IPO
#89I remember seeing their first public demo at LA Hacks in 2014. Seemed like a couple of kids right out of college. They had the iPhone's screen hooked up to the projector and one of their friends kept sending them silly text messages the whole time that they had to dismiss. This was before the Do Not Disturb feature came out. I remember wondering how it took so long for someone to make a half decent stock trading app…
Their app and UI are great, really great; but I closed most of my trades after the Gamestop fiasco and I'm not coming back. I kept the debit card and keep a few bucks in there, still use the app for quick quotes sometimes but that's about it.
same
Re: Robinhood S-1 IPO
#90I understand that many give Robinhood crap because it is not "sophisticated enough" or because of the Gamestop fiasco. Although many startups like to claim that they are "democratizing [x]", I honestly believe they did it. I have many friends that never traded before, and after they got their Robinhood account they feel comfortable enough to do it often. Even myself, who used to only trade a couple of times a year, s…
Index funds democratized investing. Robinhood “democratized” the worst part of investing and exposed unsophisticated investors to the instruments they are most likely to underperform on. Individual stock picking is probably worse than indexes but fine, however the incentive to day trade or trade complex derivatives is almost certainly going to hurt people far more often than a Vanguard account. It’s not a coincidence Robinhood has been directly linked to teen suicide and Vlad gave the proverbial lip service.
In any case, it really doesn’t matter. It’s awful at order execution, so you get worst prices on things. This was proven but SEC just gave slap on wrist.
Its an extremely immature platform and has outages at the worst times.
It’s app is simple but missing key info compared to competitors.
Finally, the GameStop fiasco was unforgivable and only a naive fool would accept the explanation given. Citadel is the MAJORITY of Robinhood revenue and was opposite that trade. The stock market has existed for over a century with online trading for decades, including many volatile stocks, and apologists can’t name a single other example of one way trade restrictions. It didn’t happen during the Volkswagen short squeeze.
Despite that, apologists act like the clearing house explanation is stone cold fact. Source? Not a single investigation other than the word of Robinhood CEO, who contradicted himself multiple times explaining it. It was the fraud of the century and only people with little understanding of finance bought the explanation.