The recent craze of “Reddit Investors” surging the stock market is something that regular investors don’t have to worry about, says Investment Advisor Brian Golly.
The phenomenon started a few days ago, after a group of Reddit users decided to go against large hedge funds betting against failing companies. The resulting effort has skyrocket stocks in companies like GameStop, ACM, Blackberry, and Macy’s.
Golly, with Smart Investing Solutions, says people who play the market on an everyday basis don’t need to worry about their investments.
“As for the everyday investor on the street, working with an investment advisor, that doesn’t really affect us in any real way,” said Golly. “We probably wouldn’t have had any exposure to any of those ‘lousy companies’ because their balance sheets didn’t make a lot of sense. We focus on quality and price, that’s informed investing, and that’s directed and focused investing, and that’s what we like to practice here.”
Golly says the stock market is always a tricky thing, but the best thing to do when investing is do your research.
“You’re far more better off to focus on the individual companies, and find companies that you’d like to own, figure out what they’re worth and then make a decision based on the prices they’re trading at. If you can find a great company at an undervalued price, long term, that should work out very well for you,” said Golly. “The big mistake you want to avoid is paying too much and having to wait a long time in order to earn a rate of return on your money.”
He urges anyone who might be wanting to join the “Reddit Investors” to stay away.
“It moves so fast, and to stay on top of the information that you need to process in order to do something like that is very, very tough to do,” said Golly. “Just because you can do something, doesn’t mean you should do something, and obviously, don’t put any money in that you’re not prepared to lose.”
