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How wealth inequality, populism have impacted stock market

Yahoo Finance's Editor-In-Chief Andy Serwer joined Yahoo Finance Live to break down populism and how it has impacted the stock market the past 2 weeks.

Video Transcript

SEANA SMITH: The battle between retail traders and hedge funds, individual investors. We've been talking about this now for quite some time, a couple of days at least, piling into some of these heavily shorted names. We want to bring in Yahoo Finance editor-in-chief Andy Serwer. And Andy, you wrote about this over the weekend, about five trends behind some of the madness that we've seen play out in the market over the last week or so in the context of bigger trends. One of them that I want to focus on first is populism.

ANDY SERWER: Yeah, I mean, that's right, Seana. A lot of people are talking about how what's going on with GameStop and Reddit and Wall Street Bets is somewhat similar to the populism you're seeing on the political front with Donald Trump and Bernie Sanders. And the bottom line is, people are unhappy with the elites. That's true in this country, and it's true around the world. And it has to do with income and wealth inequality.

And it speaks to the power that these people [INAUDIBLE]. I mean, retail investors, someone told me, used to always be wrong-- not anymore. And then another great line someone told me from Wall Street-- 2020 was bad for humans, but it was great for finance. And guess who's getting revenge now?

ADAM SHAPIRO: So how does the media play into this, Andy?

ANDY SERWER: You know, it's interesting. At first blush, when you hear people saying, Adam, oh, blame the media, I tend to discount that. But if you think about it, you know, is it a coincidence really that Donald Trump has stepped off the stage and has been banned from Twitter and Facebook, and now we have this giant news story? And a lot of people on Wall Street are saying you media people are just turning your attention to this story. And I think there's some truth to that.

Another point that should be made is a lot of times, people forget that Reddit is nothing more than a giant social media platform. We always talk about Facebook and YouTube and Twitter. Reddit's there, too. And of course, this whole thing is of Reddit. And now, of course, it's on Twitter as well. So this is a great big story that we're amplifying. No doubt about it, Adam.

SEANA SMITH: Certainly, and again, you can catch Andy's full article up on YahooFinance.com. Andy Serwer, Yahoo Finance editor-in-chief, thanks so much for joining us.