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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: S. maltophilia who wrote (66262)1/27/2021 1:55:27 PM
From: petal1 Recommendation

Recommended By
Area51

  Respond to of 78768
 
recent movements of GME and similar garbage are making a mockery of anything remotely similar to value investing

They are making a mockery of money as a concept, something which I'm not completely against –– however, I find they way in which they are doing it kinda distasteful. But, admittedly, it's hard not to watch; thrilling in a morbid way. There's some death wishes in there for sure.



To: S. maltophilia who wrote (66262)1/27/2021 2:03:11 PM
From: gcrispin1 Recommendation

Recommended By
Area51

  Read Replies (2) | Respond to of 78768
 
Let's take the three words: unnatural, insane, and dangerous.

I personally don't believe this is "unnatural". It certainly is a new phenomenon. But the very nature of of stock trading is accepting a level of risk.

Insane: Yeah, pretty crazy to see these stocks blow up but it isn't the first time frenzy has broken out.

Dangerous: I think that it is certainly a new variable of danger for the short sellers as their losses can be more than 100 percent. That is who is now is having to accept a more dangerous risk in their speculations.

The bottom line is that there are a lot of small investors taking the short sellers to the woodshed and they are getting rich doing it. That is ok with me. Does it turn investing into a new form of gambling? Sure. And these companies, if they had any brains, should be issuing stock--if anyone will take it--in order to shore up their balance sheet. But this success also brings new retail eyes to the stock market. Retail has been basically abandoning stocks or only investing passively. So I am happy with that.