GameStop short squeeze saga unfolds
As this GameStop short squeeze saga unfolds, let’s not forget how Hedge Funds initially benefited from the emergence of a RobinHood trader. Back in March-April of 2020, when millions of young ppl were forced to stay at home with nothing to do they started first with BUYING popular household names: AMZN, MSFT, AAPL, etc. Stocks like AAPL, TSLA ...
Stocks are not attractive enough?
Some investment strategists, like widely respected Tom Lee argue that equities would go higher, because ppl have are underinvested in stocks. And, once we see more retail money coming into equities vs. the unattractive bonds, then the P/E multiples should go much higher… Well, there are fundamentally 2 flaws with that argument: And, indeed, Wall ...
The Market is down only -2.6%
The Market is down only -2.6%, the first draw of any significance after a 16% melt up last 6 months, yet it has prompted a statement from the SEC that they “are watching market volatility”… Sounds like regulators (like an overbearing parent) want to ban any downside moves in stocks. ...
This fascinating short squeeze in GameStop helped to propel the Energy space up.
A few levered Energy ETFs and underlying Energy stocks denied the logic of the cyclical market sell-off and are up for the day…However, the story with Energy stocks is far more fundamental (i.e. less interesting) – the recovery in the energy demand and price of Crude Oil is inevitable, with every new ration of vaccine ...
Canadian economy is flush enough
It is so refreshing to hear from the Governor of Bank of Canada (Tiff Macklem) saying that the Canadian economy is flush enough with stimulus to survive the current downturn and doesn’t need any additional injection from the monetary policy.Maybe we can see a day when our Fiscal and Monetary authorities could have exercised some ...
Yes, the GameStop trading went nuts, and such insane moves do happen when markets are so overheated.
But what I strongly disagree with some talking heads on CNBC who claim “the craziest that they have ever seen”. GME is far from being the craziest, not even close… Market veterans might remember the Volkswagen short squeeze in the fall of 2008, when: 1. The stock rallied 800% becoming the MOST valuable company on the ...