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TROUBLESHOOTERS: Wacky Wall Street

WACKY WALL STREET
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Going out of business, not so fast!

"You need to be really-really careful, I think you can make a lot of money." says Jordan Belfort, the original "Wolf of Wall Street".

Reddit's Jaime Rogozinski adds, "this is fundamentally different, no longer are these people placing bets on sports or a horse race, they're placing bets on a market in a way that they are actually affecting the way of the outcome."

Companies on the verge of closing for good are now getting a revival on Wall Street thanks to online investing.

Financial advisor Daryl Dagit of Savant Wealth Management the latest trend is unprecedented.

"And it's not been unusual what happened last couple of weeks, if you go back to the movie, Wall Street, or the wolf on Wall Street, same thing happened, its just it was with, you know, commercial traders, you know, professionals that were betting against the market on a certain company, you have others betting for it."

Dagit says with the help of social media apps and sites, more and more people are pushing all-in to make a quick profit on investments.

"Now, with social media, there are millions coming on board doing this. But when you look at the true value of the company, the company isn't really worth what the price is that right now. So the fundamentals are pretty well broken."

It appears right now the big time investors are getting hit the hardest.

"When you take a short view of a stock and you purchase it, in order to stop the bleeding, they had to buy the stock to lock in their loss, which then escalated the cost. More people are buying it then they have numbers and that drives up the value of the share."

Which is why Dagit cautions new traders, these current trends are unlikely too last forever.

"You know, the markets will come back to reality on that company, and the value of the stock will drop. And what I worry about are those that have got on this train, and run it up. And when it when it finally crashes, it comes back to reality, those that aren't quick enough to get out will lose money."

Dagit does have advance for those still on the fence about what to do with their money, he says be patient.

"Take your earnings, pay off your student loans, pay off your debt, buyers, going back into the markets, we have found over time that you know, slow and steady wins the race in the stock market."

Donnie Tillman

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