AMC/GME/Meme: Funny to hear all the discussion around meme stock trading rising again with so much focus on the how/why this can happen all over again and if fundamentals truly don't matter. It's the same discussion from a few years ago.
I think it's easy to forget that at the root of our markets is the same mechanic that has always been in play: Supply and Demand. The S&D model can't be ignored and, in some cases, can be manipulated as it is once again. This is just the "what is" of the markets and if you get enough people willing to pile into the demand side of the equation, of course these things will continue to occur.
Too much time is being spent on either discussing these meme stock fundamentals or the mindsets of those investing in them. In some cases, even defending the fundamentals. Instead, I think everyone needs to accept the pyramid scheme style of trading for what it is. If there's enough demand on the front end, there's an opportunity to make a lot of money very quickly. But, when that demand drops off, there will be the same pain.
Personally, I continue to be surprised that there hasn't been more follow-through on the gaming of these types of stocks possessing some measure of low float, shorted interest and herd interest mechanic. This could literally be a daily trading event and a well focused and organized group of individuals could exploit this construct more regularly. Back in the day, some of you may remember the Tokyo Joe movement, of which I was in the middle of and relatively close to "Joe." It was the lesser, but similar, version of today's WSB movement. |
