Mobius positions himself in favor of the forum that shot Gamestop and Nokia

Investor Mark Mobius is against tightening regulation after Wallstreetbets forum action on Gamestop and Nokia

Mark Mobius

While US market regulators watch with concern the mess that has been mounted around the forum Wallstreetbets from Reddit and the strong rise caused by its users at Gamestop or Nokia, some gurus of Wall Street they begin to position themselves.

It is the case of Mark Mobius, one of the most reputable investors in the United States, who did not hesitate to side with Internet users and rejected any intervention to restrict trading operations.

“Definitely, there should be no regulatory action,” he said. Mobius in an interview with Bloomberg in which he made it clear that regulators should not act against traders in Reddit.

“Regulators should only ensure that operations are done efficiently and fairly between buyers and sellers, regardless of their objectives,” he argued. Mobius.


Background

  • Wallstreetbe users decided to boost Gamestop’s listing, a concerted action that they later repeated with Blackberry and Nokia as well. The Internet users of this forum were more than 1.6 million but now they reach 4 million after the impact of the news.
  • Gamestop was revalued by 250% and the value of the company reached 4,000 million dollars.
  • Some specialized short trading funds, such as Melvin Capital, had to withdraw their bearish positions against Gamestop. The fund had to receive a $ 2.75 billion injection from Citadel, sparking speculation.
  • The rebellion by retailers against short traders sparked volatility and leaped into the political realms. Democratic Senator Elisabeth Warren demanded that regulators take action. In this sense, the SEC assured that it will “actively” monitor volatility in the markets.

With this sea in the background, the position of veteran investors such as Mobius it is especially relevant. Some heavy-duty brokers, such as Robinhood, established trading restrictions, sparking complaints from many clients.

But in the opinion of MobiusIt is not about introducing more regulations but about ensuring that the market is efficient. The guru himself acknowledged not having made any changes to his portfolio as a result of these latest bouts of volatility.

Now some brokers like Robinhood They announced that they will loosen the restrictions but without offering more details, which could again generate high volatility in operations.

Investor Mark Mobius is against tightening regulation after Wallstreetbets forum action on Gamestop and Nokia


Mark Mobius

While US market regulators watch with concern the mess that has been mounted around the forum Wallstreetbets from Reddit and the strong rise caused by its users at Gamestop or Nokia, some gurus of Wall Street they begin to position themselves.

It is the case of Mark Mobius, one of the most reputable investors in the United States, who did not hesitate to side with Internet users and rejected any intervention to restrict trading operations.

“Definitely, there should be no regulatory action,” he said. Mobius in an interview with Bloomberg in which he made it clear that regulators should not act against traders in Reddit.

“Regulators should only ensure that operations are done efficiently and fairly between buyers and sellers, regardless of their objectives,” he argued. Mobius.


Background

  • Wallstreetbe users decided to boost Gamestop’s listing, a concerted action that they later repeated with Blackberry and Nokia as well. The Internet users of this forum were more than 1.6 million but now they reach 4 million after the impact of the news.
  • Gamestop was revalued by 250% and the value of the company reached 4,000 million dollars.
  • Some specialized short trading funds, such as Melvin Capital, had to withdraw their bearish positions against Gamestop. The fund had to receive a $ 2.75 billion injection from Citadel, sparking speculation.
  • The rebellion by retailers against short traders sparked volatility and leaped into the political realms. Democratic Senator Elisabeth Warren demanded that regulators take action. In this sense, the SEC assured that it will “actively” monitor volatility in the markets.

With this sea in the background, the position of veteran investors such as Mobius it is especially relevant. Some heavy-duty brokers, such as Robinhood, established trading restrictions, sparking complaints from many clients.

But in the opinion of MobiusIt is not about introducing more regulations but about ensuring that the market is efficient. The guru himself acknowledged not having made any changes to his portfolio as a result of these latest bouts of volatility.

Now some brokers like Robinhood They announced that they will loosen the restrictions but without offering more details, which could again generate high volatility in operations.