If you pay any attention to the financial markets, you know about the huge battle going on between the hedge funds and small retail investors, primarily from the Reddit message boards.
Game Stop stock had been shorted to over 100% of available stock. The Redditors caught on, and individually started buying to squeeze the shorts. What was a $10 stock got north of over $400 (with no financial reason to do so because of company performance), but instead to squeeze those hedge funds. The individual guys are all promising to hold and not sell, and it seems to be working well so far.
There are other stocks that are in similar situations, but not quite to the Game Stop battle. Nokia, AMC Theaters, Blackberry and Bed Bath and Beyond are a few of the others with really high short interest that a bunch of individuals are banding together to screw with the hedge funds.
It is awesome. I can't get enough of it. You have people like AOC and Ted Cruz coming down on the same side, supporting the individuals. (Though Elizabeth Warren has basically come out in favor of the hedge funds-no surprise).
Adding to the drama, the app Robinhood, where most of the individuals trade, stopped or severely limited the investors from buying more shares, only allowing them to sell, which of course allows the hedgefunds to try to buy and cover as the price fell because individual demand to buy was killed, because individuals couldn't buy.
Getting a little more political here, this is another case of the commoners rising up against the Elites, and the Elites coming down hard on the commoners. Now the threats are flying that these individual investors, (like maybe $2k invested) are manipulating the market, and blah blah blah. You can burn down small businesses in downtown Minneapolis, but as soon as you come for the Capitol, or Wall Street, the hammer comes out. In this Wall Street "attack" what is weird is, the attackers might be lefties or righties. You have MAGA types and Bernie Bros working together to screw over some hedge funds. It is a sight to see.
I dedicated some money that would be my dog track money, and put it in BBBY (Bed Bath and Beyond). That is my skirmish location. I'm holding. I'm down 90 bucks because I got in a little late after the peak in the short squeeze. But BBBY is tripled in price from when the squeeze war began. A bunch of the margin calls come Monday, it should be another fun day in the stock market.
PS, I'm aware this is a potentially dangerous game. These Wall Street outfits may have to start selling other assets to cover losses here, and this could drag all of Wall Street down.
Game Stop stock had been shorted to over 100% of available stock. The Redditors caught on, and individually started buying to squeeze the shorts. What was a $10 stock got north of over $400 (with no financial reason to do so because of company performance), but instead to squeeze those hedge funds. The individual guys are all promising to hold and not sell, and it seems to be working well so far.
There are other stocks that are in similar situations, but not quite to the Game Stop battle. Nokia, AMC Theaters, Blackberry and Bed Bath and Beyond are a few of the others with really high short interest that a bunch of individuals are banding together to screw with the hedge funds.
It is awesome. I can't get enough of it. You have people like AOC and Ted Cruz coming down on the same side, supporting the individuals. (Though Elizabeth Warren has basically come out in favor of the hedge funds-no surprise).
Adding to the drama, the app Robinhood, where most of the individuals trade, stopped or severely limited the investors from buying more shares, only allowing them to sell, which of course allows the hedgefunds to try to buy and cover as the price fell because individual demand to buy was killed, because individuals couldn't buy.
Getting a little more political here, this is another case of the commoners rising up against the Elites, and the Elites coming down hard on the commoners. Now the threats are flying that these individual investors, (like maybe $2k invested) are manipulating the market, and blah blah blah. You can burn down small businesses in downtown Minneapolis, but as soon as you come for the Capitol, or Wall Street, the hammer comes out. In this Wall Street "attack" what is weird is, the attackers might be lefties or righties. You have MAGA types and Bernie Bros working together to screw over some hedge funds. It is a sight to see.
I dedicated some money that would be my dog track money, and put it in BBBY (Bed Bath and Beyond). That is my skirmish location. I'm holding. I'm down 90 bucks because I got in a little late after the peak in the short squeeze. But BBBY is tripled in price from when the squeeze war began. A bunch of the margin calls come Monday, it should be another fun day in the stock market.
PS, I'm aware this is a potentially dangerous game. These Wall Street outfits may have to start selling other assets to cover losses here, and this could drag all of Wall Street down.
