Every day financial advisors tell us that we should, as part of our investment strategy, put some of our savings in the stock market. One theory is that, as the economy grows, our investments will also grow. Stats prove that the only real way to beat inflation over time is to invest in stocks. Bonds, CD’s and Money Market Funds tend to only match the cost of inflation in the long run according to studies published by various credible “think tanks”. So, as more of us are directed to stocks, it becomes critically important that the operation of the stock exchange and its rules be accurate, fair and equally accessible to all investors. Unfortunately that standard is abused more and more every day. As an example, a relatively new company, The Workhorse Group, has developed a unique electric vehicle concept that has multiple applications in various truck sizes. It has done all the right things to grow the concept—even has an integrated drone feature that allows the drone to be launched from its trucks. You would think, in a world racing (no pun intended) to go green, the company and its stock price would soar. But now enter the “gamers”. These are “investors” who benefit when stock prices are manipulated. In this case, the “gamers” use various media outlets to spread dis-information in an effort to depress the stock’s price. Because they engage in what’s called “shorting” they make huge gains by pushing the stock price down. Eventually other co-conspirators join the party and continue the false information campaign. Bottom line: “gamers” defeat the notion that investing in stocks of capable growing companies should be part of an individual’s investment strategy. Despite Workhorse’s potential growth current investors are mislead into believing the price of the stock is an unacceptable risk. Only the “shorters” win at this game. If we apply this activity to the broader market, no one is safe to trust stocks with their savings. BUYER BEWARE !!! More on the stock market in future postings…
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