Investing?

[Nosferatu]

I think it’s more that this much volatility in the market makes people nervous and sell their stock.

[BL0B]

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puts on horse head*

i know fuck all about pension & 401k's because i don't have them  .

but Mouth is right that $GME can and is bringing down the overall market and i'm pretty sure that hits 401K's and eventually when the $GME trade goes bust, pensions..

this whole $GME thing has the potential to completely blow up the market the longer it goes on.

[close]

Bl0B,

I'm not sure I understand. Can you explain how this is bringing down the entire market?

From my perspective, the stock market is bullshit. One of my mutual funds has just continued to gain value despite the pandemic that is fucking normal people. The ticker amazingly enough is FOCKX. This shit offered a 43% return last year despite the pandemic. If millions of people losing their jobs doesn't affect the market as a whole, I don't think Melvin Capital having to get a loan from the owner of the Mets is going to matter in the long run.

But, like I said, I don't fully understand this shit, so if someone can explain it to me/us, that'd be awesome.

https://www.nasdaq.com/articles/gamestop-gme-and-the-stock-market%3A-what-it-means-for-everyday-investors-2021-01-29

yeah, kinda. so like Mouth is saying here.

Its also worth noting that when hedge funds are forced to liquidate/manage positions due to r/wallstreetbets shenanigans

put horse head back on*

the $GME short squeeze, gamma squeeze causes all hedge funds to rethink their short & risk strategies and all their trade strategies basically. they rebalance their positions accordingly, to rebalance they buy/sell large, med, sml cap stocks, the whole market DOW, S&P, NADAQ ect....they lower risk, cover shorts buy protection, because of rising volatility they take on smaller/less long positions.

but it's not just the hedge funs, it's the brokers and retail as well. brokers have to sell to raise capital to cover unprecedented options action (why robin hood had to limit trade). all across the market puts and calls are being traded at an alarming rate, raising volatility. retail sells their ($TSLA $APPL etc.) large, med cap stock to buy more $GME, $AMC ect. = more volatility, all these things drive stocks lower and selling begets more selling and repositioning for everyone.

IDK if makes sense or not? but that's how i understand it. i'm mostly into Volatility, i don't know much about hedge funds, moneymakers & brokers other than what a pick-up along the way.

[BL0B]

From my perspective, the stock market is bullshit. One of my mutual funds has just continued to gain value despite the pandemic that is fucking normal people. The ticker amazingly enough is FOCKX. This shit offered a 43% return last year despite the pandemic. If millions of people losing their jobs doesn't affect the market as a whole, I don't think Melvin Capital having to get a loan from the owner of the Mets is going to matter in the long run.

But, like I said, I don't fully understand this shit, so if someone can explain it to me/us, that'd be awesome.

https://www.nasdaq.com/articles/gamestop-gme-and-the-stock-market%3A-what-it-means-for-everyday-investors-2021-01-29

#me too

it is BS!

the mutual fund probably had a mix of  lrg, med, sml cap stocks, that benefitted from stay at home.

that's kinda what's going on with some hedge funds making billions because they already held $GME in their sml caps @ like $2.00. hedge funds have to own a certain amount of stock, bonds, ect.. they can't just be in one position. i think that's how most funds work, mutual including, IDK though.

thought the same thing going into the pandemic, all the jobs, the sky is falling, doomed ect. but the Fed kept propping up the markets with free money and buying shit bonds. as far Melvin, he's fucked! this still might take down some other hedge funds and i kinda thinking robin goes poof too, they don't seem they'll have the capital to continue to allow options trading. plus the type of options trades being put on by retail can leave robinhood having to raise even more capital.

[TheLurper]

I think it’s more that this much volatility in the market makes people nervous and sell their stock.

From my very basic understanding :
The hedge fund has to buy back the now super expensive stock they borrowed to short the company. So they need a lot of cash or they will be liquidated?

yeah, kinda. so like Mouth is saying here.

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Its also worth noting that when hedge funds are forced to liquidate/manage positions due to r/wallstreetbets shenanigans

[close]

I think the volatility concern could make sense, but can the ups and downs of GME, NOK, BB, AMC, etc. offer enough volatility to affect the market as a whole? Is this a significant amount of volatility or is it just some amusing side show? I mean the NSYE's market capitalization is 25 trillion and nasdaq's is 11 trillion. Does this circus actually matter?

As for the hedge funds needing come up with money to recoup any losses... they don't necessarily need to sell the stocks that offered them a significant amount of gains last year. Melvin Capital already got 2 billion from Plotkin's old colleague who owns the Mets. They're fine. Plotkin might lose a little sleep or be a little embarrassed, but generally, he, his yachts, and hedge fund will be fine.

Also, short sellers lost over 40 billion on TSLA last year (another over valued meme stock). But, I haven't heard anyone say TSLA is going to crash the market. (https://fortune.com/2021/01/29/gamestop-stock-how-much-hedge-funds-have-lost-sellers-losses-gme-steve-cohen-point72-andrew-left-citron-research-short-squeeze/)

I wonder if this is anything more than a rare moment where a terrible bet based on internet group think paid off for normal people.

I looked at my 401K and my optional retirement accounts to see what was going on, my main account is up $200 for the month, my second biggest account is down 11 dollars, and my smallest retirement account is up 9 dollars. So, even with this side show, I "earned" $198 so far this month from speculation. The only part of my investment portfolio that is sucking are my horrible retail trades (and the fact that my XRP are forever lost in that wallet)...I bought high sold low with AirBnB, memed out with BB, and the rest of my garbage picks are down from years ago (at least a few pay dividends so I'm coming up at a break even point soon for a couple of them).


Finally, I wonder if investing is like skateboarding... should we be investing in shit that is actually good and doing cool shit, or should we be investing in Zumiez? Like, I love supporting Anti-Hero because their boards are amazing, but they're never going to make as much money as that stupid company with the cats and aliens (I'm blanking on their name) despite that company being run like shit and selling garbage.

[Betaphenylethylalamine]

Has anyone even mentioned how fucked this will be for the brokerage companies?

Hedge funds are small peas in the game.

This is gonna be a disaster yet hilarious to watch unfold.

[BallDontLie]

But it seems like that’s the catch... especially right now with how much of an impact social media has. It’s crazy to think a year ago (i think? Not sure when gme started it’s rise) game stop was i believe on the verge of bankruptcy, no? now here we are.

I’m trying to think long term, but damn it’s hard not to bite on the hot hand. I put some away for nok and amc both on cash app. Robinhood I’m gonna let it play out and see what happens before moving to another app..

[Betaphenylethylalamine]

But it seems like that’s the catch... especially right now with how much of an impact social media has. It’s crazy to think a year ago (i think? Not sure when gme started it’s rise) game stop was i believe on the verge of bankruptcy, no? now here we are.

I’m trying to think long term, but damn it’s hard not to bite on the hot hand. I put some away for nok and amc both on cash app. Robinhood I’m gonna let it play out and see what happens before moving to another app..

Good luck and keep your eyes open. Regulators are already on this situation trying to figure out wtf to do.

The mass of buyers DO NOT WANT to sell, they are holding them accountable for their actions, legally.

Everyday new stocks will be popping up(or at least frequently) that get fuckin bumrushed. All of them will be very cheap, almost hilarious companies just holding on(as it gets the message across that normal folk have figured out their tactics)

BlackBerry or tootsie roll for instance

[Mouth]

Another factor that can have a big impact are bots, which now make up the majority of market trading. When the volitily resulting from gme etc starts triggering their algos, it can lead to a vicious cycle of destabilisation with far-reaching effects.
 
Still, I'm all for r/wallstreetbets. Going to be interesting to see how things play out next week.

[Betaphenylethylalamine]

Another factor that can have a big impact are bots, which now make up the majority of market trading. When the volitily resulting from gme etc starts triggering their algos, it can lead to a vicious cycle of destabilisation with far-reaching effects.
 
Still, I'm all for r/wallstreetbets. Going to be interesting to see how things play out next week.

Great point.

Wsb is over 7 million people now in not that long of a period too. As they project what to invest in next, that number is going to rise incredibly (I'd assume with all the attention).

At some point I'd expect 1)illegal regulations 2)a hedgefund manager gets made a example ie Bernie madoff 3)class warfare and this doubles down hard

4)all of the above

Also, ahead of it's time

[sexualhelon]

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Another factor that can have a big impact are bots, which now make up the majority of market trading. When the volitily resulting from gme etc starts triggering their algos, it can lead to a vicious cycle of destabilisation with far-reaching effects.
 
Still, I'm all for r/wallstreetbets. Going to be interesting to see how things play out next week.

[close]

Great point.

Wsb is over 7 million people now in not that long of a period too. As they project what to invest in next, that number is going to rise incredibly (I'd assume with all the attention).

At some point I'd expect 1)illegal regulations 2)a hedgefund manager gets made a example ie Bernie madoff 3)class warfare and this doubles down hard

4)all of the above

Been on WSB for years and generally speaking I wouldn't follow their lead. It's basically what the community slogan says it is - 'Like 4chan found a bloomberg terminal.'

This type of thing has been happening in retail investing for a long, long time but previously the traditional investor had to try and go with the direction of 'big money' - i.e. hedge funds. With the internet putting all the little guys in touch and allowing them to form a collective, they can now equally fuck the hedge funds. Robinhood was, I believe, the first trading platform that did away with fees that would keep people from buying shares. It inspired a lot of people to download an app and try to invest without probably even knowing the definition.

Anyway, the interesting thing about GME that's pissing off the hedge funds is that this was a stated goal on the boards. GME was the most shorted stock on the market, or maybe the second, I'm not sure. This one guy on WSB, deepfuckingvalue, had invested 50k into GME some while back viewing it as a value stock and was down 30k. At some point the public information about the shorting stats were posted on the board.

People started pointing out that if collectively everyone would start buying and holding the shares then the hedge funds would be forced to buy them back - losing a whole lot of money. Basically, they loaned the shares out and have to return them w/ interest. They were betting that GME shares would go down. So this even allows people to make some pretty ridiculous calls, saying they'll sell a share of GME for 1k for which some desperate shorts might cave into buying.

That DFV guy? He's apparently still holding and apparently has 20+ million net profit. Usually WSB is like the equivalent of stocktwits - a bunch of dwoobers stocktwitting noise. But I find this all really entertaining to watch unfold.

Personally, I wouldn't get in at this point but I bought some shares at $40 expecting to lose it all and now look at this shit. I do expect GME to tank - but not back to $15 - at a certain point because in no way do these share values add up.

[sk8ordontordie]

I’m Holding amc long term, why not?

[Nosferatu]

I think a lot of people are going to end up losing a lot of money on gme and then the masses will move on from wallstreetbets, as they should. Fun while it lasts though.

[Carrolls Chesthairs]

I think a lot of people are going to end up losing a lot of money on gme

I'll be blown away if it exceeds $400. It already seems as if it's deflating. Same with Dogecoin.

[mclovin1336]

I think a lot of people are going to end up losing a lot of money on gme and then the masses will move on from wallstreetbets, as they should. Fun while it lasts though.

yeah well, of course, because they stopped them to buy more... plus a lot of people arent "investing" theyre joining a meme to fuck over a fucking hedge fonds

[IUTSM]

Although r/WSB has typically been a first class cess pool of racist, ableist shit posting that I think of as boogaloo without the guns, this has been and continues to be great to watch. It's also going to be interesting to see the neoliberal government intervention to protect Wall Street. J'Biden has a chance to look real, real bad

[sk8ordontordie]

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I think a lot of people are going to end up losing a lot of money on gme

[close]

I'll be blown away if it exceeds $400. It already seems as if it's deflating. Same with Dogecoin.

Dogecoin is just a meme where if you bought low you should sell it it ever goes up crazy to make money. GME actually has value behind it with the shorts.

[50mm]

I've had Robinhood downloaded for like 2 years and never used it. Always thought about putting in 10 or 20 bucks but know trying to beat the market is dumb. Today I just said screw it, I'll throw in $40 to buy 3 AMC stock and see if these fuckers do it again. Gambling isn't my thing and if I ever go to a casino I give myself and my girlfriend a $20 so I don't feel bad about throwing this $40 in.

[sexualhelon]

I've had Robinhood downloaded for like 2 years and never used it. Always thought about putting in 10 or 20 bucks but know trying to beat the market is dumb. Today I just said screw it, I'll throw in $40 to buy 3 AMC stock and see if these fuckers do it again. Gambling isn't my thing and if I ever go to a casino I give myself and my girlfriend a $20 so I don't feel bad about throwing this $40 in.

If you're trying to 'beat' the market, you're destined to lose. Most people will do better investing on a longer time horizon - i.e. 5-10 years, retirement. In which case you'd be choosing value stocks or, better for most people, choosing some top ETF's going with the overall economy.

The average stock market return is about 10% per year for nearly the last century. So lets say you have 10k to put in a savings account or a large cap ETF. With the ETF you're hoping, and the odds are, you earn around 1k from your investment that year. With a savings account, something like .07%, so $7. Of course, by definition, there is some risk even in making what's considered a safe investment. You'll make a better return on getting a credit card with a good rewards program vs a savings account.

With GME, AMC, DOGE (or whatever shill coin) - those are more akin to gambling IMHO. Investing in DOGE vs Bitcoin or Eth is like betting on the commodity of concrete vs gold. DOGE was birthed as a joke and long term I don't see it's merit as a technology or commodity.

[Mouth]

Anyone else get in on xrp? I bought in on Saturday and stopped out 30% up. Then it went up another 50%. Then Mikey Taylor went all in. Then it crashed and burned bad.

I went from elation to horror and back to elation in a matter of hours.

[VCR]

I had XRP before the SEC shit and made some quick change. Should have dumped some money back in but too late now.

[essal]

stay the fuck out of XRP https://beincrypto.com/xrp-faces-more-exchange-suspensions-following-pump-dump-activity/

do a little bit of DD before committing any money into any form of investing... if not all of slap will own all of doge valued at $0.00000001 per coin that we bought at $0.8

BTC, ETH, EGLD- all long plans (3+ years).

[Billy Bitchcakes]

Bought a couple of GME stocks just from following it for too long and getting FOMO. Feel like an idiot already but fuck it, we'll see what happens.

Anyone invested in renewable energy? Sounds like a more sensible option.

[PAWL]

Bought a couple of GME stocks just from following it for too long and getting FOMO. Feel like an idiot already but fuck it, we'll see what happens.

Anyone invested in renewable energy? Sounds like a more sensible option.

I'm with you man. Just gonna ignore it til it either explodes or my money has evaporated.

[Billy Bitchcakes]

Gnar'd for solidarity

[TheLurper]

This gme thing is crazy.

Mark Cuban says hold but between all the bullshit at robinhood and the fact that gme is basically blockbuster this whole thing is crazy.

I'm tempted to put down 100 for a share just to see what happens.

As I was typing this out I wonder what we be a safer bet... playing the 33% odds of betting on the first set of numbers on the roulette table ($100 turns to $300 if this hits) or betting $100 GME and hoping for "the moon"?

[Mesteezo]

Wall Street won this last week as soon as they successfully deployed diversion tactics by getting the masses to buy AMC, BB, NOK, NAKD, SNDL, and fucking DOGE coin. Guess who's hedge fund has a stake in AMC? Jon Soros. https://hedgefollow.com/stocks/AMC. Why isn't anybody talking about that fact? A bunch of undisciplined retail traders were never going to win a short war against the Soros playbook, I mean come on his daddy shorted the fucking British Pound against the Bank of England.

Divide and conquer, yo.

Maybe this kickstarts Occupy Wall Street pt 2, the aftermath of this will be interesting to watch.

[Mesteezo]

As I was typing this out I wonder what we be a safer bet... playing the 33% odds of betting on the first set of numbers on the roulette table ($100 turns to $300 if this hits) or betting $100 GME and hoping for "the moon"?

Funny story, for my 21st I went to Vegas with the homies. Decided to play some roulette and only playing red-black games of chance. First bet, 25 on black, comes out red. 2nd bet, 50 on black, comes out red. 3rd bet, 100 on black, comes out red. 4th bet, 200 on black, comes out red. 5th bet, 400 on black, comes out red. 6th bet, another 400 on black, another fucking red. Yeah, fuck roulette. I have the worst RNG.

[Billy Bitchcakes]

The thing with that strategy though is you're pretty much guaranteed to win as long as you can keep doubling your money. He would've eventually won and recouped all his losses, plus $25.

[RCB3]

The thing with that strategy though is you're pretty much guaranteed to win as long as you can keep doubling your money. He would've eventually won and recouped all his losses, plus $25.

The issue you run into is tables have a max bet, so even if you had a million to spend, you'd hit a cap. And also, as you said, you're only going to win back your initial first bet.

[Billy Bitchcakes]

Free $25 dollars though. But yeah I assumed casinos would have some way of stopping that otherwise pros would just be spamming roulette tables racking up money in incremental amounts