I went to see the movie Money Monster this weekend and really enjoyed it! I left with a couple of observations. While the movie clearly had fictitious elements, some of the movie was clearly rooted in reality. George Clooney plays a character very similar to Jim Cramer, a TV personality who dispenses his knowledge and wit to help the viewer make better financial decisions.  When someone hears his advice and takes it literally by investing everything he has in a particular holding, which has happened, the stock then loses almost all of its value because of a supposed “computer glitch” in the trading algorithm. The aggravated investor then takes over the station at gunpoint to uncover the truth about what caused IBIS’ stock to rapidly drop $800 million in value and to express how the whole system is rigged. While we don’t think the industry as a whole is set up against the average investor, there is always chance for something like this to happen in the wrong scenarios. There have been numerous examples of this corporate level corruption and huge losses that lend to this negative public image of the industry.

Subsequenlly, there are a couple takeaways from the events.  This movie displays the negative aspects of the industry as the CEO has numerous secrets on personal and professional levels that lead to this massive loss in stock prices. George Clooney gives advice that has no consequences, while in real life this simply isn’t true. The movie paints the financial industry as the villain, and Clooney’s character as a mass-media enabler.  He is an oblivious pawn in some larger fraudulent shell game orchestrated by a conniving CEO. It serves as a reminder of how this corruption does exist, and why making sure your money is invested wisely is paramount. Working with a partner or team that you can trust will help you navigate these rough waters. 

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