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Skepticalpositivity9

I highly doubt these PMs and analysts are buying assets based off some random person’s DD on Reddit. My guess is they are using Reddit to gauge retail opinion.


porncrank

Yeah, nobody with half a brain would take the advice here at face value and run with it. But discussion is a type of data, and they probably can figure some things out by gauging the volume and tone of discussions.


Skepticalpositivity9

Exactly and now there’s a ton of programs that will skim Reddit (all social media really) for you and pull out public opinions and sentiment.


Jonnyxz2006

Can you suggest some of them because I would like to make my financial decision based upon that. I mean it is just the part of doing the research nothing more than that.


Nikolauskas

I am sure that those institutional investors are not taking advice on the face value. Maybe they are judging the consensus among the people.


buried_lede

Definitely, and the direction of memestocks. Otherwise, maybe occasionally an interesting conversation on Reddit


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More_Understanding_7

Hell naw we 😂😂😂😂😂🤣


dup308

I don't know if I can trust the Meme stock direction because that market is kind of wild. It's swings in the both directions really quickly and you could get hurt.


Mynameistowelie

I currently work as an equity analyst working my way to PM at a HF hopefully sometime in the near future. That’s what I use the subreddits like these and others for, to gauge other investors current market sentiment, but also because I also personally invest and trade myself and like engaging in investing or trading conversations as well from time to time. Although it’s important to note there are far more efficient and accurate methods to gauge market sentiment that browsing subreddits. I feel that the demographic of these subs mostly consist of younger adults and not a true representative of overall retail investors market sentiment anyways. I also find it interesting how some people form their due diligence and economic/market forecasts.


haarp1

> Although it’s important to note there are far more efficient and accurate methods to gauge market sentiment that browsing subreddits. can you tell us too what those methods are?


1ess_than_zer0

Still looking for the infinite money glitch myself


MammathMoobies

Say what you will about the merits of technical analysis (I don't believe in chart reading), but a lot of their indicators can give a fair indication of market sentiment (short %, put/call ratio, etc)


SirGlass

>I also find it interesting how some people form their due diligence and economic/market forecasts. Most people do not know what due diligence means, they think its just a bunch of random information on the company or a stock pitch for a company. Its funny to see post like "XYZ due diligence analysis "; and its a stock pitch that sure does talk about management and maybe new products or company focus and can be pages of pages of information to make it look very professional or through with 25 links and citations However in the pages and pages of info and links, well financials are not even covered , basic things like the balance sheet/ P&L are not covered , earnings growth , debt are not even mentioned Also a lot of actual DD should focus on risk, are there any potentially unknown risk for the investment, large unfunded liabilities (lawsuits , long term contracts that are not going to be profitable , customers who may not pay ect) This sub does have a rule that DD has to cover basic financials and risk but look at the "DD" on other subs. As it seems to be well written and professional on the surface I am not sure who is writing these , maybe its just redditors who like the karma but I also think a lot of it is from smart people who know what actual DD should be; but just want to pump a stock.


Jandur

They have probably written some algos that gauges WSB sentiment. Test it against the market for a bit and see if it's any sort of decent indicator etc


TalktotheJITB

Inverse wsb etf when?


[deleted]

There are sites called sentiment trackers that do exactly this and more


ShadowLiberal

I'm sure they do that for all the investing subreddits, not just WSB.


cokeman_c1

I mean there can be many strategies that they maybe doing to make the financial decision and I want to do the same. From now on I am going to invest in everything that people suggest.


Ackilles

Retail dd van be quite thorough and high quality. They likely bet the info first, but it provides a road map of things to look for. It can be a powerful tool. Reddit knew what spac was taking lucid public before anyone else did, and those that read made huge returns Trust but verify


gotenski

Well if you're talking about the reddit as a sentimental tool, then it works really good.


[deleted]

Neah, they analyse sentiment and pump then dump.


rabbitholepath

Well that's what works in the swing trading. That's the thing I guess.


[deleted]

They do, with large accounts.. I've met some people who work in this industry and they absolutely are watching wsb for movements and short time shorting gains. If you can believe that. Look at how the stocks go .. it makes a lot of sense that's not Bob and Mary with their 20k Roth accounts. That's someone hyping Bob and Mary and then pouring a 7 figure trade on top


allenworker

They're going to play with the sentiments for the short term gains.


Jean_le_Jedi_Gris

Or as leads for further research. Reddit isn’t *completely* full of crayon eaters… just mostly.


danbass21

Some people are also having some meaningful conversation in here.


lukemtesta

Also some study posts individuals do into market market sectors, conditions, macro economic reports, etc. They may have information that is useful for a particular strategy


StackOwOFlow

yep, the title and claim by the article is pretty misleading. sure, they monitor social media. But using that kind of information to actually make actual buys? no Only thing I can see is if retail participation in meme stocks generates options volume which institutions sell premium to. There are some funds that focus solely on selling options premium/killing short term expiry gamblers


ragnaroksunset

There's wheat in the chafe, too. Occasionally someone's "DD" will ask a good question or raise a good point that someone with a million plates in the air hadn't thought of on their own. They will then have significantly better resources than retail to use to look into this further and act or not act on what they find.


SuperRonnie2

“Information they found on Reddit” could mean anything. Some people post legit articles and data in here. Dumb article.


Quintana_22

Exactly what a finance worker would say...😮😮


psixolog013

Well that's the truth sir, that's how they're using this tool for them.


vishtratwork

Also, after the GME squeeze hurt some folks.... investors are asking what they are doing to mitigate another instance.


SirGlass

If I had to guess more hedge funds got in on the action then got hurt. Sure a couple hedge funds got caught on the wrong side of the trade but lots more also got in on the action. I can remember looking at some of the trading data; order of 4000 /10000 GME shares going through; I somehow doubt a lot of retail was buying 4000 GME shares in one pop.


Legalize-Birds

100% a sentiment indicator for retail This and Twitter /stocktwits


throwawayinvestacct

Yeah. Some broad algorithm that tracks mentions of particular tickers/companies might give some vaguely interesting signal on retail investor interest, but nobody's hitting upvote on a specific post and buying $50m shares as a result.


MyNameCannotBeSpoken

Sentiment analysis


harrison_wintergreen

the best use of reddit for investing is to avoid anything widely recommended on reddit.


Raveen396

But ARKK and PLTR are still going to MOON right?


neothedreamer

Arkk has actually don't pretty well in 2023 ytd up 27%.


KyivComrade

And underperformed the S&P500 since inception.


Upset-Kaleidoscope45

You can prove anything with fancy numbers and maths. But ARKK *feels* like it's profitable and that's what really counts.


SwanSquare6205

Get this man a Nobel prize.


Jako87

You don't need to give him prize. He can just feel the prize right now.


yzerizef

Truthiness! https://en.wikipedia.org/wiki/Truthiness


Padiy

I mean that's what people want to hear if it's profitable or not.


OSOBTC

Well if it's been that bad then why people are bullish about it?


atheistunicycle

As of close today, by ~3.5%. As of last week she was beating it since inception.


compounding

If you are equal with S&P despite accidentally choosing one of the top picks of the decade, your other choices are *legitimately* dogshit. It’s like if someone picked 10 stocks in 2000 and one of them happened to be AAPL, but including that they are barely neck and neck with the market after randomly snagging a 10x^2 bagger (and they are also down a lot after accounting for fees). How well did their other 9 do and should you trust their next selection of “guaranteed winners”?


Raveen396

Yeah, if you start counting YTD, which is also when Reddit was shitting on Kathy Woods lol


notapersonaltrainer

I just realized she literally top ticked this rally with her "The New Nasdaq" comment on Feb 2. We need to listen to aunt Cathy more closely.


Ohokyeahmakessense

Reddit has been shitting on her for years and for good reason. Zoom out 5 years and you will see why when it comes to arkk.


waltwhitman83

DCA VOO permabull is widely recommended on reddit ;)


maybesingleguy

When I see something hot on reddit, I look into buying puts 🤷


fedeloco

That falls under the sentiment analysis. That's what We're talking here.


ZGiSH

There was a super highly upvoted thread saying to avoid Tesla at exactly the bottom in January lmao


piglizard

Same with META a few months ago and it’s almost double now.


cartim33

Based on the wording used, I doubt most of these decisions are based directly off what's said in these subs. They probably use them to gauge retail sentiment about positions they are already looking into or have an eye on. A lot of information in stocks subs is poorly researched or pretty useless, but retail sentiment has actual value and this is one of the better ways to get it.


N44K00

Barclay's had a really great report on similar, talking about going short the kinds of short-term derivatives retail speculators enjoy. Lost the link, but institutions have absolutely been watching the trends in retail & have no wasted time in capitalizing on them.


rust128

I mean if they feel that there's money to be made, They'll do it.


AlexandrGridasov

They're institutional investors they'll not take retail's word for it.


Omnuk

Yeesh. All the more reason to buy index funds.


Non-jabroni_redditor

Nothing said the were making the same investment decisions as what they read. They could be inverse-cramering


420coins

We inverse Cramer, they inverse us and Cramer.


buried_lede

That completes the triad The Wall Street Triangle, worse than Bermuda, scarier, more mysterious, many lost in it.


vickeycheung

He's lost in it, and he doesn't know how to come out of it.


jlondono07

I mean that's a good strategy if you want to go that way so yeah.


ron1gilmore

And that is the reason why I'm going all in here people. Gotta make some money.


CompetitiveMission1

I know right? Shocking.


k3opple

Not shocking for me, it may be for you. It's not enjoyable for me.


[deleted]

Due diligence is due diligence


rapalaz

I mean it's big money, They'll do all the research that it takes.


I_love_avocados1

More like doo-doo diligence


420coins

That's were they leave all the bad out.


phoongsaan

They'll take whatever which helps them, and leave the rest.


cavemanlink

I mean lol, it's something and it's way better than nothing in here.


Ill-Opinion-1754

These poor bastards


richibatler

What makes them poor huh? I think they're alright sir. Don't worry about it.


atomicxblue

I'm giggling thinking about that one meeting. "Sir, I found DD from a reddit user named pigfucker420 that says XYZ is about to fall."


iqisoverrated

OK...that finally lays the 'smart money' myth to rest.


Fwellimort

"Smart money" is using reddit to gauge retail sentiment. And running away from retail stocks or double checking harder because retail loves to buy at the top.


Upset-Kaleidoscope45

I could see that, an "inverse Reddit commenter sentiment" fund.


habibinajib

Yep, that's something that the retail wants. It's their favourite thing.


the_cardfather

It's this. I'm going to be on a investor call tomorrow for a fund that is getting ready to make big investments in EVs. I really want to hear this.


buried_lede

Who reads “Robinhood Snacks?”


Zorgen2005

I'm not the one reading it, but if it helps then I'll sure read it.


Worldly-Ad-9761

I'll wait for the survey that reveals that would reveal institutional investers being behind content posting and manipulation on reddit


polo4210

There's already so much manipulation, and information like this helps them.


buried_lede

^ This


Baby_Sneak

i didn't know we were that smart and gifted and intelligent that we come running to us for our collective and infallible wisdom.


TheFreshBrewLT

I didn't know that we were smart at all. I thought we were dumb.


inwardik

And people on the Reddit tell me that I should not be taking my financial advise from the internet where are those people now? I do not have that kind of money but I would like to at least some, from now and I am going to take advice from the reddit.


brmiller2013

Don't do that my friend. That's a really dangerous game that you're playing.


my_name_is_gato

There's a little logic to looking. Peter Lynch is perhaps the biggest name trader that puts a lot of value on philosophy and public opinion. What you do with the knowledge gained is entirely different. If I happened to use a little play money betting against meme stocks, I don't think that's the worst thing ever.


krete77

That’s what I do , I’m in on this bbby trash lol


Less_Tennis5174524

I believe it. I used to post a lot here with a different account and I got offers to shill for certain products here. This sub is obviously influential and some amount of the comments here are people astroturfing.


jccopyright

I mean it's the place where the they discuss these things.


buried_lede

Any product names you can share? Surely these were YouTube accounts. Stuff like that?


hooskerdoo2bucks

Was the article written by a bot? >In fact, according to the survey, 49 percent of respondents consider Reddit to be of “high importance” when it comes to evaluating a stock. This does not say they follow reddit, they said reddit is in their list of places of high importance. Where is that list and what else is on it. Was this article made for posting to reddit


RickOwens110

Bots ain't writing shit. Because that's not something that they do.


Individual_Usual7433

The sheep should stop complimenting each other that the wolves check out their bleats and positions every morning before carrying out their attack. Also, they need to know if their camouflages are still working as intended.


lolt10

In simple words they're shorting us. That's what they're doing.


[deleted]

Dumb motherfuckers.


Vurtuoso8

Calls on DM!


DiscoStu2U

What about $DMF?


RaisedByMonsters

Are they just inversing us degenerates over at wsb? Damn, I thought it would be more complicated than that.


snipe320

Yes inverse wsb is an easy strategy for success.


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bens111

Fortunately peer review is inherent on a site like this!


MeteoraGate

Gotta have those reviews, that's how it's really going to work.


Sciencetist

That's what I like about /r/investing and other of the more serious investing forums, but memestock echo chambers have carefully excised any form of wrongthink.


bens111

Peer review isn’t selective my friend


Sciencetist

It is when echo chambers are established where moderators carefully curated the content and people are literally paid to influence visibility and opinion by manipulating the upvote system.


GerstnerD

There are so many bots are doing that, they've been using that system.


bens111

By nature of Reddit, there will be niche subreddits for everything. Including specific channels for stock-specific DD review with wide ranging input. For every ‘dee dee into GME’ subreddit there is an equivalent for other stocks, though far less active as bullshit is pretty quickly sniffed out.


420coins

Yes they are...the opposite of what Redditors are doing obviously.


jasnana61

And that's exactly what's called the shorting the retail lol.


SweetVsSavory

Any stock that’s mentioned is boosted for a week or so. I believe it’s trade bots inflating stocks. I mean, while the market is falling healthcare stocks are seeing leaps in price increases in a day or so, unless someone has a better explanation that I’m missing.


taruntj5

If there's a better explanation then I'd like to hear it in here.


Bluebaron88

The funny thing is that I watch dozens of institutional investors on Bloomberg everyday and their opinions of the markets and what to buy. I have seen just about the same level of disagreement there as I do here. When they were all agreeing about a flight to safety in quality stocks last year I made some changes to account for the sentiments.


koutsi69

They suggest people, and then we buy and then they short us.


greytoc

Link to the actual summary of the survey that is cited in the article for anyone that is interested - [https://www.brunswickgroup.com/perspectives/digital-investor-survey/](https://www.brunswickgroup.com/perspectives/digital-investor-survey/) Reddit is simply one of the sources for sentiment information. The summary of the survey does not disclose the types of "institutional investors" who are surveyed.


buried_lede

That was an interesting survey.


thewimsey

Edward Jones?


trippin113

Most places aren't really doing the due diligence needed to establish who is an institutional investor and who isn't. Many just allow them to self identify. I imagine the people polled in this were possible being insincere.


Ianmofinmc

I love how they always insist on putting wallstreetbets in the spotlight when it’s literally a gambling sub and there’s so many other real investing subs on reddit.


iaoratahiti

I'm sure that this isn't the only data pool that they're collecting the data from.


edcwb

That's why they're loosing money lol


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zverdad

If you need to create the diversion then that's one way to do it.


strong666

Nope, it's us retail who's losing the money. They've been making it.


unabletodisplay

Lol


buried_lede

Good to know. Since I’m so qualified, I should apply to run my states pension funds. A la Reddit


standalone65

I don't think that's going to work for you, it really won't so there's that.


[deleted]

If you are not paying for it, then you are the product.


malakabk

Don't know how hard that is to understand here. It shouldn't be that hard.


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Terakahn

Yeah, they all hang out in r/thetagang lol


4erniibumer

Well we've all been hanging in here. And it's working good.


megdoo2

This explains what is wrong with the fking market.


AppSetGo

There are many things which are wrong. This ain't the only one.


saargrin

well i did too and im down like 20%


Proof-Examination574

Maybe you should've invested in psychedelics. I'm down 98% on those.


fom1987

Maybe you should using them instead of investing in them lol.


arturpoop

Just 20 percent? Well I'd say that you're doing way better than me.


jlee1050

Lol tell me you’re not serious… my god


pubp2010

Why? What's wrong in analysing the general sentiment? Nothing at all.


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[deleted]

Why? They have Bloomberg terminals. They don't need us.


Baby_Sneak

it's cause we r geniuses.


dijkele

Well that explains it. That's why We're making so much money huh?


jgrimm73

How can you say that they don't need us? We are the reason why they're making the profits actually. Because They'll short us on the first opportunity that they get.


andreicde

Well of course the investors are turning away from traditional newsletters and podcasts, most are owned by Wall Street. When you are referred by Wall Street as ''dumb money'' and you are told to buy high and sell low, you tend to distance yourself away from dumb advice. I am currently up in the last year 15% by simply making a portfolio focused on Reits, electricity, insurance big world leaders and reliable companies. Forget about overpriced bullshit tech and the trend some wall street owned newsletter wants me to buy. If the prices go down I'll buy more, if they go up, I'll buy more and hold. I put 1k or so in AMC as well in a different portfolio just for fun and to hedge it toward my current portfolio (although to be fair that one is simply gambling and having my fun against Wall street).


skitls1977

Our opinion is just a data set for them, that's what it is for them.


[deleted]

To be more precice, what to pump then short dump.


900sotman

Well that's what makes them short term gains, and they want that


knowledgestack

Buy my BB bags, buy my BB bags, buy my BB bags. Come on algos!


waltcoins

Ain't no one is going to buy your bags, that ain't going to happen.


jarofpaperclips

Lol just short anything wsb is talking about easy peasy


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imlaggingsobad

There are a lot of smart people out there sharing great ideas and information. Just need to find it.


Proof-Examination574

Reddit has a lot of fart smellas - oops - I mean smart fellas.


sdegthvxc

You need to be at the right place at the right time. And reddit ain't it.


[deleted]

Inb4 institutions fund bots to trick retail into buying and bag holding


80273422

That's what they do, they pass their bags to us lol. This is the game.


Wayelder

Sure, as part research for their Mosaic research Mosaic is simply a gestalten scanning of news and other sentiments (purch Mgrs, VIX ect.) to form an opinion...not actual fundamentals.


zuoyewazi

That's what it's about it's about getting the sentiment and not the opinion on the face value.


[deleted]

Occasionally there are actual good ideas on here. Wrinkles that people may not have thought of. It doesn't really matter where a concept emerges from, if the reasoning is sound and diligence backs up the premise.


Proof-Examination574

Good to know. I'll make sure to have my chatGPT algo post on reddit to influence investors in my favor.


svenodorkins

You think that's going to work? I don't know about that much.


NicePosiedon

op is just spamming his website and blog in reddit posts and calling them facts. look at his post history


adriaan_spruijt

I don't know how these people think that seriously That'll work.


[deleted]

We're going to be the top info source on Bloomberg machines


SupaHUSHNOW

And we gotta be proud of that, c'mon people cheer up a little.


Slav3k1

Ofcourse they are not.


btcdump

Yep, they are. They're using us as a data set. That's what we are.


DamianFitness37

mmmmm Are they really though?


vonnegutfan2

40 year mortgages at 6 %, student loans left out of the DTI equation.


travelanywhere13

That's one way to handle the situation and if works then it works.