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Buffalo, NY | Local News, Weather, Traffic, Sports | WGRZ.com

Local economics experts weigh-in on GameStop stock market frenzy

'If you are thinking about getting involved in the stock market, particularly for stocks with AMC or GameStop, you should stop.'

NEW YORK — The GameStop stock market frenzy has left a lot of questions lingering about the future of the stock market.

Local economic experts say the impact of recent events will depend on what happens in the coming weeks.  

"Well, I think the impact is going to be partly determined by what regulators decide to do. Do they find there is fraud going on here or not? I don't know at this point. Are there going to be trading restrictions that are going to be applied?" said Ogorek Wealth Management President, Anthony Ogorek.

Added Buffalo State's Co-Director of Economic Education, Dr. Frederick Floss: "If you are thinking about getting involved in the stock market particularly for stocks with AMC or GameStop, you should stop, because the only thing that is going to happen is you're going to lose your money."

Another broader concern, according to NBC News, comes when amateurs buying stocks become overly excited and inflate stock prices, and they sometimes need to take out loans to buy shares.

"This manipulation is what they did in the 1920s and 1930s that eventually crashed the market," Dr. Floss said. "So by buying up all of the stocks and shooting the price way up, people, not hedge funds, are going to want to buy these stocks, and at some point Elon Musk and his group are going to sell it at a profit, and all of the people that bought in are going to lose their money because they bought $100 and now its worth $2."

Many people have asked 2 On Your Side, what does this mean for a pension or 401K? 

Experts say long term investment accounts such as retirement accounts for the average investor are not impacted by a day or two of negative or positive gains.

"I would tell you not to worry about your pensions, do not go in now to your 401K and start changing everything, it's too late" Dr. Floss said.