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Some thoughts on the recent $GME $AMC WSB chaos...
The good:
1. Hedge funds will be much more likely to think twice before shorting securities, in general, especially those that have a high short ratio
2. There are more people discovering/entering the market than ever before.
The good:
1. Hedge funds will be much more likely to think twice before shorting securities, in general, especially those that have a high short ratio
2. There are more people discovering/entering the market than ever before.
3. People are continuing to discover the power they have when they band together for a common purpose.
4. Robinhoods's true colors have been seen. They had no right to do what they did. It's hard not to see where they won't pay dearly, one way or another, as they should.
4. Robinhoods's true colors have been seen. They had no right to do what they did. It's hard not to see where they won't pay dearly, one way or another, as they should.
The not so good:
The arrogance, ignorance, and shortsightedness, while often good intentioned, still runs rampant, even on the "underdog" side of things.
Many of these WSB/reddit folks don't seem to have any desire to understand what the market is at its foundation.
The arrogance, ignorance, and shortsightedness, while often good intentioned, still runs rampant, even on the "underdog" side of things.
Many of these WSB/reddit folks don't seem to have any desire to understand what the market is at its foundation.
Many of my friends are calling this a revolution. I don't believe that's the case. This certainly isn't the first time the market has seen short squeezes, even to this degree, but I do think it's a paradigm shift of sorts. It's a wake up call to the suits....
... which perhaps is a bit of a revolution in itself, but I would call it more of a shift.
One reason why I love the markets so much is that when you buy a stock or an option with an underlying stock, you are essentially buying a piece of that company.
One reason why I love the markets so much is that when you buy a stock or an option with an underlying stock, you are essentially buying a piece of that company.
.... and perhaps that is one thing that the hedge funds that relentlessly short companies have forgotten and these WSB players *are* remembering. However, I also think it's important to remember valuation, even if future-looking..
I see a lot of mindsets from new blood in the markets with no such consideration or desire to understand such a concept. It's apparent that this doesn't bother or concern many of you likely to read this, and that's ok. It does concern me a bit. It can be a slippery slope.
Whether my concern is for them, or the overall structural foundation of the markets, and therefore myself, isn't even clear to me, but there is some slight concern nonetheless.
It's likely I'm looking way too deep into this, and this will be yet another blip in a few months...
It's likely I'm looking way too deep into this, and this will be yet another blip in a few months...
While I'm happy for the successes of this 'movement', I hope these new players will learn some respect for what the market is, beyond a vehicle of supply and demand.
I remain committed to staying focused on my strategy, which includes blocking out such noise and distraction
I remain committed to staying focused on my strategy, which includes blocking out such noise and distraction
