Mr Dario, founder of Bridgewater hedge fund, takes a deeper view of the recent “retail war” in the US stock market.
According to foreign media, Dario called the incidents an act of “rebellion” and last week’s market turmoil showed “the growing intolerance of those who hold opposing views”. Dario said in an interview with The Washington Post on Friday:
“I’m more concerned about the general anger, even hatred, and the desire to bring people down in almost every sector of the country right now. The general desire to hurt each other.”
Dario notes that while the moves of day traders bidding up game stations may seem like “rebellious” behavior, it shows they are beginning to understand the mechanics of the market, just like those who get squeezed.
At the same time, he thought of himself:
“They remind me of myself back then. I started investing at a very young age, when I was a rebel and I just wanted to invest my way and take my competitors down.”
While it’s an interesting story for Mr. Dario, it’s worrying what’s next for the current stock market.
But Dario is right that there is widespread anger. But analysts quip that if these people were among the brokers’ clients, they would be even angrier if they found out their winnings had been lost to a failed broker, and that the current amount of anger would be insignificant.
But as Financial Zero Hedge pointed out the other day, online brokerage Robinhood’s balance sheet still looks remarkably stable under the current circumstances.
In late January, Dario tweeted a message to President Joe Biden, saying the United States was at a turning point where it would either enter a hell-of-war or withdraw from the struggle to work for peace and prosperity to address the huge wealth, value and opportunity gaps it now sees.
“It’s not enough to have good words and good spirit. People have to agree on how to make the pie bigger and how to divide it up. It will take revolutionary change, and it will take bipartisanship and skill to resolve this peacefully, and it will not be easy.”