The craziness of the GameStop buying frenzy is rocking Wall Street. I find this sticking to the big hedge funds amusing. I am also happy that this is making some small investors rich. But I am concern that some unsophisticated beginning investors are going to get hurt badly. Reddit is pushing investors to go into silver now. I think this means that stocks like GameStop are going to drop soon. Small investors who had buy in recently will have bought high and will end up selling low and lose money. While hedge funds may lose billions, most of them can survive the losses. A small investors who loses a few thousands may be in much more trouble.
I think most of the hedge funds have gotten out of the positions by now. So there won't be much more loss for the MAN. More buying of these stocks that are way overvalued will make this a pyramid scheme now. Those who bought early and are encouraging others to jump in now are like those at the top of the pyramid. They will benefit but those who jump in now will be at the bottom and lose. So my advice for anyone who is not in, don't get in. Those who have bought in, take your profit and run now!
I am not sure if Robinhood is being bought off by hedge fund companies or other rich people on Wall Street to limit the buying of GameStop. But it is really doing the small guy a favor at this time. Don't buy unless you have money to burn to make a political statement.
It's pretty scary to see that this could happen. Of course we've suspected market manipulation and there has always been safeguards. As much as it's kind of fun to see and of course, I wish I had GME a couple of weeks ago so that I could have sold it last week, this almost seems like a trap. What's going to happen to the people who will lost their shirts on this? After this trend has stopped, things will go back to status quo anyways. So to screw the man, you have to maintain this and I don't see it happening at all.
ReplyDeleteSo yeah, of course you have to buy only if you have money to burn. Unfortunately, the ones that are being led into this probably don't have the funds to burn.
Super Bowl predictions? I have a hard time picking against Brady, but my head says Chiefs and I will be rooting for KC. I probably won't be mad if Tampa wins. It's a nice story that the home team will get to play in their stadium for the championship.
-LBOAYM
GameStop stock already dropped over 30% today, so hopefully the small guys are cashing out already. Yes, the market for options, futures etc. are manipulated, I believe. I may write about that in the future. Needless to say, it is a zero sum game that favors the big players.
ReplyDeleteIf Brady wins again in Tampa Bay, he is superman. But I will take the young guy to win his second in a row. He has faster legs and a better team around him.
Did you see the generals who staged the military coup in Myanmar calling the election fraud? Trump is thinking: How can I get these generals to come over and work for me? Thanks to Cruz, Hawley, Greene, Guiliani, and Trump, we are almost Myanmar.
I either forgot or didn't realize that Myanmar was a democracy. I have a friend who is from there and still calls it Burma. It seems that there has always been civil unrest there, so when I saw there was a coup yesterday, I was puzzled because I already thought the military was already in charge. So I looked it up and for some reason didn't remember that the democratic party had been in charge since the 90's and even Obama went to visit not so long ago.
ReplyDeleteSo this latest coup is interesting that they are calling for fraud. It seems to me that the military has always wanted power back and was looking for an excuse. Here, I hope, the military is committed to upholding democracy and would never approve of a political party or extremists to overtake the government.
-LBOAYM