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The Democratization of Financial Markets
Driven by an unprecedented amount of accessibility.
Reading Fred Wilson’s blog post, The Revenge of Retail, this morning inspired me to get these thoughts down on paper.
First, a point for clarity. Markets are ruthless and it is likely a lot of retail traders are going to lose their asses treating the markets like a casino. Underneath that, though, is the rise of something I’ve been waiting to see for a very long time: a new power dynamic born out of a generational shift and technology’s ability to drive democratization and accessibility of information, data, and financial markets and tools. The playing field is being leveled and I plan to invest in the startups making sure it stays that way.
We are witnessing the democratization of financial markets driven by unprecedented amounts of accessibility.
Power has been concentrated in too few hands for far too long. Financial institutions have always been able to control the markets because of access and information asymmetry. Information is now readily accessible, traders can startup with little capital and social media platforms are giving groups a place to organize and act.
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