NEW YORK, Feb. 4, 2021 /PRNewsCentre/ — Financial analyst and President of The Hajdari Group, Zaim Hajdari (https://www.thehajdarigroup.com/) recently spoke about the current short-selling scandal embroiling both Wall Street and the related online trading industry. Though the media focus has been on hedge funds, short sellers, Redditors, and the role of trading platforms, Hajdari believes what is really being lost in all the noise is a host of average retail investors and their valid concerns; a vulnerable group that stands to suffer permanent financial harm. The Hajdari Group is well positioned to observe and offer comments on recent Wall Street events as a boutique investment firm that gained notoriety for its innovative Sharia-compliant investment services: InvestHalal.
Working in the heart of New York City’s financial industry, Zaim Hajdari watched the Reddit trading event happen with growing alarm: "My first thought was this was either a group of people trying to artificially inflate the stock to make a quick profit at any cost, or a group who thought they were sparking some sort of financial "revolution" – as they saw it. Both groups are equally misguided, and display a stark lack of knowledge about how the market works; and, more importantly, what the market is supposed to do."
"The market should be used to invest in healthy, growing companies – to lift those companies up, and in that lifting, rise with them. What we saw with this social media group’s trading was pure gambling, not investing. It was simply a group of irresponsible gamblers who valued quick-profit over sustained growth. And the market has certainly weathered these types before. But it always leaves a trail of wreckage, and unfortunately, that wreckage hurts normal, everyday investors the most."
When asked about hedge funds and online trading platforms, Hajdari noted: "No mistake about it: there are hedge funds and short-sellers who have lost billions. But honestly, there are also hedge funds that have made hundreds of millions on this debacle too. So, who do you sympathize with? Both sides know the risks. My concern is for the individual investors whose portfolios are negatively impacted by these events – the average, good people who come into my office and ask: ‘Is this going to hurt my family?’ People who rely upon their investments to support whole families."
Hajdari concluded: "Those are the individuals who deserve answers – who deserve a real hard look at what trading platforms will and will not allow. It’s not a matter of arbitrary trading rules to benefit a few – we’re talking about guarding against those who routinely take a bull-in-a-china-shop trading approach. Robinhood, TD Ameritrade and other platforms have to answer to their investors – the average customers who trade in good faith and stand to lose everything if these platforms go down because of recklessness. Individual investors who feel like they’ve gamed the system are just fooling themselves – even though I think we’ll now see a rise in hedge funds and other institutions leveraging these social media platforms for their own benefit. But it takes a professional to really understand the nuances and far-flung future consequences of this type of behavior. The Reddit investors are likely already losing millions in just days."
"For honest retail investors, I offer a simple truth that isn’t going to change anytime soon: Gambling with your assets will only bring sorrow. But if you invest in a diversity of quality companies, over the long term, you are much more likely to be successful."
About The Hajdari Group
The Hajdari Group ("Hajdari Group") is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Hajdari Group and its representatives are properly licensed or exempt from licensure. Learn more at: www.TheHajdariGroup.com.
Disclaimer: The foregoing content reflects the opinions of The Hajdari Group and is subject to change. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful, or that markets will recover or react as they have in the past.
Zaim Hajdari, President
SOURCE: Hajdari Group