From Brokers to Bookies: The Troubling Shift in Modern Investing
2025
Principal Storyteller and Analyst:
Paul Grant Truesdell, J.D., AIF, CLU, ChFC, RFC
Founder & CEO of The Truesdell Companies
The Truesdell Professional Building
200 NW 52nd Avenue
Ocala, Florida 34482
352-612-1000 - Local
212-433-2525 - New York
Truesdell Wealth, Inc.
https://truesdellwealth.com
The Truesdell Companies
https://truesdell.net
The Truesdell Companies was a proud sponsor of the Eirinn Abu benefit concert for Tunnel to Towers, on February 28th at the Circle Square arena in Ocala, Florida. For more information, visit: https://eirinnabu.com or https://eirinnabu.com/event/5760795/695871447/eirinn-abu-and-tunnel-to-towers-foundation-concert
Events
Essential Florida Estate Documents
Casual Conversations
Stonewater – Stone Creek - Ocala
April 25 – 6:30 pm
Reservations Required - Call or Text: 352-612-1000
Retirement Income: The Good, Bad, and Ugly
Casual Conversations
Stonewater – Stone Creek - Ocala
March 9 – 6:30 pm
Reservations Required - Call or Text: 352-612-1000
Single or With Dependent Spouse
Casual Conversations
May 16 – 6:30 pm
Reservations Required - Call or Text: 352-612-1000
The Truesdell Military Procurement Portfolio
Casual Conversations
May 23 – 6:30 pm
Reservations Required - Call or Text: 352-612-1000
June & July – A Financial Series in Oak Run – Ocala, Florida
Disclaimer
You are listening to the Paul Truesdell Podcast, sponsored by Truesdell Wealth and the other Truesdell Companies. Note. Due to our extensive holdings and our clients, always assume that we have a position in all companies discussed and that a conflict of interest exists. The information presented is provided for entertainment and informational purposes only. Truesdell Wealth is a Registered Investment Advisor.
Rough Notes
From Brokers to Bookies: The Troubling Shift in Modern Investing
Introduction
In recent years, the financial landscape has undergone a significant transformation. Platforms once dedicated to facilitating investments are now venturing into territories reminiscent of gambling arenas. This shift raises pressing ethical and professional questions about the direction in which modern investing is heading.
Understanding the Basics
Before delving deeper, it's essential to grasp some foundational terms:
- Long Position This involves purchasing a stock with the belief that its value will increase over time
- Short Selling Here, an investor borrows shares and sells them, hoping to repurchase them later at a lower price, profiting from the difference.
- Options Contracts These are agreements that grant the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific timeframe.
- Prediction Markets Platforms where individuals can place bets on the outcomes of future events, such as elections or sports match.
Robinhood's Entry into Prediction Markets
Robinhood, a platform renowned for democratizing stock trading, has recently introduced "event contracts." These allow users to wager on various outcomes, from sports tournaments like March Madness to political events such as presidential elections. While presented as innovative financial instruments, these offerings closely resemble traditional gambling activities.
Ethical and Professional Concerns
The integration of betting mechanisms into investment platforms blurs the line between investing and gambling. This convergence can mislead users, especially younger investors, into engaging in high-risk behaviors under the guise of legitimate investing. Regulatory bodies have taken notice; for instance, Massachusetts regulators have initiated probes into Robinhood's betting offerings related to college basketball.
The Issue with Short Selling
Short selling, while a legitimate financial strategy, has its controversies. Elon Musk, CEO of Tesla, has been a vocal critic, describing short selling as "a means for bad people on Wall Street to steal money from small investors" and advocating for its prohibition. Furthermore, during financial crises, several European nations have imposed temporary bans on short selling to curb market volatility.
Robinhood's Acquisition of TradePMR
In a significant move, Robinhood acquired TradePMR, a custodial platform for Registered Investment Advisors, for $300 million. This acquisition raises concerns about potential conflicts of interest, as it merges advisory services with a platform promoting speculative trading activities.
Look, the evolution of investment platforms into hybrid models that incorporate gambling elements poses ethical and professional challenges. It's imperative for regulators, financial professionals, and investors to recognize and address these issues to ensure the integrity of the financial system and protect the interests of all stakeholder, but this is a natural progression as a result of the illegal Covid lockdowns.
COVID-19 Retail Investing Surge
During the COVID-19 lockdowns, many individuals, particularly younger adults, found themselves with increased free time and, in some cases, stimulus funds. This environment contributed to a notable rise in retail investing. Studies indicate that retail investors increased their average weekly trading intensity by approximately 13.9% as COVID-19 cases doubled, highlighting a significant uptick in trading activities during the pandemic.
Platforms like Robinhood, with their user-friendly interfaces and commission-free trades, became particularly popular among these new investors. However, the ease of access also led to concerns about inexperienced individuals engaging in high-risk trading without fully understanding the implications.
Robinhood's Foray into Prediction Markets
In recent developments, Robinhood has introduced "event contracts," allowing users to bet on outcomes of events like sports tournaments and political election. This move has drawn criticism from regulators and financial experts who argue that such offerings blur the line between investing and gambling. Massachusetts' top securities regulator, William Galvin, expressed concern over this development, stating that linking gambling events to popular sports, especially those appealing to young people, is problematic.
The concern is that these features may encourage speculative behavior among users who might not fully grasp the risks involved, potentially leading to significant financial losses.
Ethical Implications and Market Integrity
The integration of gambling-like features into investment platforms raises ethical questions about the role of such platforms in promoting responsible financial behavior. Critics argue that by gamifying trading and introducing speculative products, platforms like Robinhood may prioritize user engagement over the financial well-being of their user.
This shift could undermine the credibility of financial markets, transforming them from venues for prudent investment to arenas of speculation and chance.
Distinguishing Investing, Speculating, and Gambling
To clarify:
- Investing: Allocating money into assets with the expectation of generating income or profit over time, based on fundamental analysis and long-term growth prospect.
- Speculating: Engaging in financial transactions that involve significant risk, with the hope of substantial gains, often based on market trends or technical analysis.
- Gambling: Wagering money on outcomes largely determined by chance, with little to no reliance on analysis or predictable patterns.
While all three involve risk, the key differences lie in the methods and intentions behind the financial decisions.
Final Thoughts: Back to Basics, On Purpose
Let me be very clear: I don’t do Bitcoin. I don’t touch cryptocurrency. I have no interest in chasing the next digital lottery ticket. I don’t believe in gold as a long-term growth strategy, and I don’t believe in collecting things under the illusion that they’ll turn into financial windfalls. If you collect something, do it for personal enjoyment—not financial gain.
I don’t want anything to do with brokers who act like bookies. We’ve lost the plot when investment platforms start betting on basketball games and presidential elections. That’s not investing. That’s gambling. And it erodes everything the financial markets were built to do—allocate capital, reward discipline, and fund innovation.
I’m not here to throw darts at a board or hand out loans just because someone can fog a mirror and has a heartbeat. That’s how we got into the housing crisis. That’s how we’ve turned everything into a security to be traded, sliced up, and sold by people who don’t understand the underlying value.
I stick with the basics. I believe in productive companies, tangible output, disciplined saving, and long-term planning. I believe in knowing what you own, why you own it, and how it fits into your life. I believe that local control matters more than institutional control. And I believe that when you strip away the noise, the basics still win—every single time.
Call it old-fashioned. Call it traditional. I call it time-tested. And I’m not changing. Because over and over again, the flashy stuff fades, but the fundamentals endure.
Principal Storyteller and Analyst:
Paul Grant Truesdell, J.D., AIF, CLU, ChFC, RFC
Founder & CEO of The Truesdell Companies
The Truesdell Professional Building
200 NW 52nd Avenue
Ocala, Florida 34482
352-612-1000 - Local
212-433-2525 - New York
Truesdell Wealth, Inc.
https://truesdellwealth.com
The Truesdell Companies
https://truesdell.net
The Truesdell Companies was a proud sponsor of the Eirinn Abu benefit concert for Tunnel to Towers, on February 28th at the Circle Square arena in Ocala, Florida. For more information, visit: https://eirinnabu.com or https://eirinnabu.com/event/5760795/695871447/eirinn-abu-and-tunnel-to-towers-foundation-concert
Events
Essential Florida Estate Documents
Casual Conversations
Stonewater – Stone Creek - Ocala
April 25 – 6:30 pm
Reservations Required - Call or Text: 352-612-1000
Retirement Income: The Good, Bad, and Ugly
Casual Conversations
Stonewater – Stone Creek - Ocala
March 9 – 6:30 pm
Reservations Required - Call or Text: 352-612-1000
Single or With Dependent Spouse
Casual Conversations
May 16 – 6:30 pm
Reservations Required - Call or Text: 352-612-1000
The Truesdell Military Procurement Portfolio
Casual Conversations
May 23 – 6:30 pm
Reservations Required - Call or Text: 352-612-1000
June & July – A Financial Series in Oak Run – Ocala, Florida
Disclaimer
You are listening to the Paul Truesdell Podcast, sponsored by Truesdell Wealth and the other Truesdell Companies. Note. Due to our extensive holdings and our clients, always assume that we have a position in all companies discussed and that a conflict of interest exists. The information presented is provided for entertainment and informational purposes only. Truesdell Wealth is a Registered Investment Advisor.
Rough Notes
From Brokers to Bookies: The Troubling Shift in Modern Investing
Introduction
In recent years, the financial landscape has undergone a significant transformation. Platforms once dedicated to facilitating investments are now venturing into territories reminiscent of gambling arenas. This shift raises pressing ethical and professional questions about the direction in which modern investing is heading.
Understanding the Basics
Before delving deeper, it's essential to grasp some foundational terms:
- Long Position This involves purchasing a stock with the belief that its value will increase over time
- Short Selling Here, an investor borrows shares and sells them, hoping to repurchase them later at a lower price, profiting from the difference.
- Options Contracts These are agreements that grant the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific timeframe.
- Prediction Markets Platforms where individuals can place bets on the outcomes of future events, such as elections or sports match.
Robinhood's Entry into Prediction Markets
Robinhood, a platform renowned for democratizing stock trading, has recently introduced "event contracts." These allow users to wager on various outcomes, from sports tournaments like March Madness to political events such as presidential elections. While presented as innovative financial instruments, these offerings closely resemble traditional gambling activities.
Ethical and Professional Concerns
The integration of betting mechanisms into investment platforms blurs the line between investing and gambling. This convergence can mislead users, especially younger investors, into engaging in high-risk behaviors under the guise of legitimate investing. Regulatory bodies have taken notice; for instance, Massachusetts regulators have initiated probes into Robinhood's betting offerings related to college basketball.
The Issue with Short Selling
Short selling, while a legitimate financial strategy, has its controversies. Elon Musk, CEO of Tesla, has been a vocal critic, describing short selling as "a means for bad people on Wall Street to steal money from small investors" and advocating for its prohibition. Furthermore, during financial crises, several European nations have imposed temporary bans on short selling to curb market volatility.
Robinhood's Acquisition of TradePMR
In a significant move, Robinhood acquired TradePMR, a custodial platform for Registered Investment Advisors, for $300 million. This acquisition raises concerns about potential conflicts of interest, as it merges advisory services with a platform promoting speculative trading activities.
Look, the evolution of investment platforms into hybrid models that incorporate gambling elements poses ethical and professional challenges. It's imperative for regulators, financial professionals, and investors to recognize and address these issues to ensure the integrity of the financial system and protect the interests of all stakeholder, but this is a natural progression as a result of the illegal Covid lockdowns.
COVID-19 Retail Investing Surge
During the COVID-19 lockdowns, many individuals, particularly younger adults, found themselves with increased free time and, in some cases, stimulus funds. This environment contributed to a notable rise in retail investing. Studies indicate that retail investors increased their average weekly trading intensity by approximately 13.9% as COVID-19 cases doubled, highlighting a significant uptick in trading activities during the pandemic.
Platforms like Robinhood, with their user-friendly interfaces and commission-free trades, became particularly popular among these new investors. However, the ease of access also led to concerns about inexperienced individuals engaging in high-risk trading without fully understanding the implications.
Robinhood's Foray into Prediction Markets
In recent developments, Robinhood has introduced "event contracts," allowing users to bet on outcomes of events like sports tournaments and political election. This move has drawn criticism from regulators and financial experts who argue that such offerings blur the line between investing and gambling. Massachusetts' top securities regulator, William Galvin, expressed concern over this development, stating that linking gambling events to popular sports, especially those appealing to young people, is problematic.
The concern is that these features may encourage speculative behavior among users who might not fully grasp the risks involved, potentially leading to significant financial losses.
Ethical Implications and Market Integrity
The integration of gambling-like features into investment platforms raises ethical questions about the role of such platforms in promoting responsible financial behavior. Critics argue that by gamifying trading and introducing speculative products, platforms like Robinhood may prioritize user engagement over the financial well-being of their user.
This shift could undermine the credibility of financial markets, transforming them from venues for prudent investment to arenas of speculation and chance.
Distinguishing Investing, Speculating, and Gambling
To clarify:
- Investing: Allocating money into assets with the expectation of generating income or profit over time, based on fundamental analysis and long-term growth prospect.
- Speculating: Engaging in financial transactions that involve significant risk, with the hope of substantial gains, often based on market trends or technical analysis.
- Gambling: Wagering money on outcomes largely determined by chance, with little to no reliance on analysis or predictable patterns.
While all three involve risk, the key differences lie in the methods and intentions behind the financial decisions.
Final Thoughts: Back to Basics, On Purpose
Let me be very clear: I don’t do Bitcoin. I don’t touch cryptocurrency. I have no interest in chasing the next digital lottery ticket. I don’t believe in gold as a long-term growth strategy, and I don’t believe in collecting things under the illusion that they’ll turn into financial windfalls. If you collect something, do it for personal enjoyment—not financial gain.
I don’t want anything to do with brokers who act like bookies. We’ve lost the plot when investment platforms start betting on basketball games and presidential elections. That’s not investing. That’s gambling. And it erodes everything the financial markets were built to do—allocate capital, reward discipline, and fund innovation.
I’m not here to throw darts at a board or hand out loans just because someone can fog a mirror and has a heartbeat. That’s how we got into the housing crisis. That’s how we’ve turned everything into a security to be traded, sliced up, and sold by people who don’t understand the underlying value.
I stick with the basics. I believe in productive companies, tangible output, disciplined saving, and long-term planning. I believe in knowing what you own, why you own it, and how it fits into your life. I believe that local control matters more than institutional control. And I believe that when you strip away the noise, the basics still win—every single time.
Call it old-fashioned. Call it traditional. I call it time-tested. And I’m not changing. Because over and over again, the flashy stuff fades, but the fundamentals endure.