Business & Investment

Opinion: GameStop’s stock price surge and QAnon don’t seem to make any difference, but they share some common traits.

Former SEC Commissioner Laura Anger Comparison In a brief pressure on GameStop’s stock against a recent US Capitol raid, she primarily mentioned the need for proper regulation. “Without the police at the right time, things get a little strange.”

But these phenomena leading to the January 6th and GameStop events
+ 67.87%

Stock frenzy has more in common than you might think.

It’s no exaggeration to say that no one really expects a sharp rise in GameStop’s share price, except for a few Reddit users. There are certainly logical and rational reasons behind the initial interest in equities. Most notably, hedge funds have overused themselves by shorting it.

However, trading behavior is not always rational. In the case of GameStop, we highlighted two unconscious factors behind investors’ interest in the company.

What’s fascinating about these underlying psychological aspects is that they also explain another movement that affects America, QAnon. Like GameStop, growing interest in this group has puzzled Americans. Why has a series of virtually false and eccentric ideas become so widespread and pervasive within popular denominations?

Similar group dynamics

At first glance, these two phenomena do not look any different. However, through the lens of behavioral science, we find that the psychological biases that shape them are basically the same.

First, you need to understand the dynamics of the group. Here, there are many similarities between the r / WallStreetBetsReddit community and the QAnon community. At Reddit, members of this group connect through shared stories of wins and losses, wild gambling stories, remixed internet memes, and unique terminology. After reading many posts, there is a clear sense of pride, connection and identity within r / WallStreetBets subreddit.

This also applies to QAnon. Members of QAnon have developed shared languages ​​and visual artifacts (the “Q” logo) throughout their social media presence on Parler, Gab and Facebook. Similarly, QAnon has no pride or lack of community. Members internalized the group’s beliefs as the center of their identity. They also support each other in the fight to “spread the gospel” of false information.

From a psychological point of view, when people are members of a group, they do something to promote and protect other group members. People disproportionately prefer groups of peers to outsiders, even when group membership is randomly assigned to strangers in the lab. These effects are magnified when the group is tightly connected, such as in the Reddit and QAnon communities. Occasionally, prejudice outside the group may even take the form of slander, which considers non-group members as other members and is not worth the equal respect. The characterization of some politicians as “Satanist pedophiles” by QAnon certainly reflects this.

Act of rebellion

Another aspect of group behavior is also involved here. These members feel that they are essentially different from the repulsive group. Psychological findings teach us that greater group bias should be expected when members feel more “far” from members of external groups.

In contrast to the “normal Joe” identified by many Reddit users and recent GameStop buyers, hedge fund leaders are alien, far and more powerful. They cannot be any more different from each other. For members of r / WallStreetBets, “winning the GameStop War” is a way to verify their independence, equality, or superiority over other stronger groups.

This also applies to QAnon. Members were clearly aware of the differences between themselves and the “elite” who govern us across common values, powers, classes, and even racial and religious backgrounds. Unlike the elite who represent power, QAnon represented “people.” Like GameStop, QAnon members saw the need to overthrow the establishment of DC in order to properly restore the “real American value” stolen by the ruling class.

Why did these movements attract the attention and interest of the general public when the members of the core group explained their enthusiasm for achieving their goals?

I’m not sure, but I suspect that many people are attracted to these groups because they believe in what psychologists call procedural justice. Simply put, people want a fair process. When a process is considered fair, people are more likely to adhere to the results, even if the results are not favorable. Conversely, when they consider a situation or result to be fundamentally unfair, they may seek justice in other ways.

In one study investigating 73 legal arbitrations, those who considered the process unfair were less likely to follow the arbitrator’s decision. For them, this act of rebellion was justified by their perception of injustice.

If financial markets are seen in favor of privileged hedge fund managers, GameStop’s recent investors can be motivated not only by monetary gains, but also to defeat justice. There is sex. Indeed, many feel that the market is not behaving fairly.Recent Ipsos polls show that only 35% of Americans Trust business leaders..In addition, 60% are at a disadvantage to Wall Street executives, while 57% are Wall Street leaders. Somewhat or significant impact In their lives. For many, they feel that their lives are influenced by unreliable people.

Washington DC and politicians have similar distrust. According to an Ipsos poll, 57% of Americans see the elected civil servants at a disadvantage. This is associated with enormous institutional distrust. According to a survey by the General Social Survey, only 23% of Americans have “great confidence” in US institutions. These feelings are clearly reflected in QAnon’s ideology and feelings.

These forces do not disappear immediately. All companies and brands, not just financial companies and political leaders, need to be careful. The goals of these two groups are different, but both show a desire to connect based on common values ​​and beliefs. Customers have always tried to counter unfair practices, but their ability to do so is limited.

Boycotts aren’t new, but their ability to connect, organize, and move markets with the Internet gives them the freedom to create new tools to resolve perceived injustice.

Jesse Itzkowitz is Senior Vice President of the Center for Behavioral Sciences at Ipsos. Follow him on Twitter @JesseItzkowitz.. Greg Gwiasda is the vice president there.

GameStop Details:

GameStop and AMC dramas go beyond the stock market

opinion: Reddit Open Letter to GameStop Army

The largest short squeeze on the stock market, including GameStop and AMC:

Opinion: GameStop’s stock price surge and QAnon don’t seem to make any difference, but they share some common traits. Opinion: GameStop’s stock price surge and QAnon don’t seem to make any difference, but they share some common traits.

Back to top button