Redditors Drive up Gamestop Stock Prices, causing Hedge Fund Short Sellers Billions in Losses
- Thread starter GURPS
- Start date
Dakota
~~~~~~~
I think we are finally unifying
This story IS bigger than most people originally thought. CNN can stick that Trump crap up his anus. People are starting to realize it is Wall Street that runs the show and they control the politicians. Short-sellers lost $14.3 billion today and it is now on main street.
This story IS bigger than most people originally thought. CNN can stick that Trump crap up his anus. People are starting to realize it is Wall Street that runs the show and they control the politicians. Short-sellers lost $14.3 billion today and it is now on main street.
I have vey diverse portfolio and doing well, so I'm good. For now!I think we are finally unifying
This story IS bigger than most people originally thought. CNN can stick that Trump crap up his anus. People are starting to realize it is Wall Street that runs the show and they control the politicians.
TPD
the poor dad
You laughed at my BYND but I have tripled my money with that one in 10 months. But JNJ, PFE, and PG are solid holdings.
PeoplesElbow
Well-Known Member
A blast from the past from the Don & Mike Show. "Don's BlackBerry"
What Is a Hedge Fund?
A hedge fund pools money from investors to buy securities or other types of investments. If this sounds a lot like a mutual fund or exchange-traded fund (ETF) to you, you’re not wrong. But hedge funds aren’t limited the same ways mutual funds are. They more often employ aggressive investment strategies, like leveraged, debt-based investing and short-selling, and they can purchase types of assets other funds can’t invest in, like real estate, art and currency.
Those strategies hedge funds use come with significant risk, says Sarah Catherine Gutierrez, a certified financial planner (CFP) and CEO of Aptus Financial.
“Hedge funds are riskier investments because they are often placing bets on investments seeking outsized, shorter-term gains,” she says. “This can even be with borrowed dollars. But those bets can lose.”
Hedge funds take on these riskier strategies to produce returns regardless of market conditions. This tactic appeals to investors looking to continue to earn returns even in bear markets. And, there may be some glamour associated with qualifying to invest in hedge funds.
“Hedge funds are seen by some as an exclusive club that you have to qualify for,” says Katie Brewer, CFP and president of Your Richest Life. “Hedge funds can have their advantages—a chance at higher returns—and disadvantages, including illiquidity, volatility and risk.”
A hedge fund pools money from investors to buy securities or other types of investments. If this sounds a lot like a mutual fund or exchange-traded fund (ETF) to you, you’re not wrong. But hedge funds aren’t limited the same ways mutual funds are. They more often employ aggressive investment strategies, like leveraged, debt-based investing and short-selling, and they can purchase types of assets other funds can’t invest in, like real estate, art and currency.
Those strategies hedge funds use come with significant risk, says Sarah Catherine Gutierrez, a certified financial planner (CFP) and CEO of Aptus Financial.
“Hedge funds are riskier investments because they are often placing bets on investments seeking outsized, shorter-term gains,” she says. “This can even be with borrowed dollars. But those bets can lose.”
Hedge funds take on these riskier strategies to produce returns regardless of market conditions. This tactic appeals to investors looking to continue to earn returns even in bear markets. And, there may be some glamour associated with qualifying to invest in hedge funds.
“Hedge funds are seen by some as an exclusive club that you have to qualify for,” says Katie Brewer, CFP and president of Your Richest Life. “Hedge funds can have their advantages—a chance at higher returns—and disadvantages, including illiquidity, volatility and risk.”
The financial establishment is calling for “authorities” to do something about it. Why? The stock market is all about gambling. It’s a game. The finance bros are just mad that some guys on Reddit played better than the hedge-fund managers who are used to winning. Oh well! You win some and you lose some, boys! The memes are hilarious.
Even NASDAQ was threatening to shut down the market over the mass inflation of GameStop stock to protect their friends on Wall Street. NASDAQ CEO Adena Friedman was literally stuttering her way through a justification for regulating the people who made the house lose. This didn’t convince me of any wrongdoing. Does it convince you?
Taking billions out of the market and bankrupting people is only something hedge fund managers get to do, not you people in your underwear trading at home. Duh.
Redditors are posting what they’re going to do with their winnings. #Billions is trending on Twitter.
Charles Payne knows what’s up. “I didn’t hear one person on tv complaining about Wall Street trying to crush GameStop. 140% short! I told my subscribers to buy this stock and they made a fortune,” he told Fox Business. He’s 100% right. And the financial establishment’s push for regulation is a sad attempt to “change the rules of the game now after the general public is making money,” said Payne. “Individual investors are playing the same game you are playing only now you’re losing.” So grow up, Wall Street, and stop running to Mommy to regulate the players who outsmarted you.
Even NASDAQ was threatening to shut down the market over the mass inflation of GameStop stock to protect their friends on Wall Street. NASDAQ CEO Adena Friedman was literally stuttering her way through a justification for regulating the people who made the house lose. This didn’t convince me of any wrongdoing. Does it convince you?
Taking billions out of the market and bankrupting people is only something hedge fund managers get to do, not you people in your underwear trading at home. Duh.
Redditors are posting what they’re going to do with their winnings. #Billions is trending on Twitter.
Charles Payne knows what’s up. “I didn’t hear one person on tv complaining about Wall Street trying to crush GameStop. 140% short! I told my subscribers to buy this stock and they made a fortune,” he told Fox Business. He’s 100% right. And the financial establishment’s push for regulation is a sad attempt to “change the rules of the game now after the general public is making money,” said Payne. “Individual investors are playing the same game you are playing only now you’re losing.” So grow up, Wall Street, and stop running to Mommy to regulate the players who outsmarted you.
glhs837
Power with Control
Yeah, was listening to Fox Business while driving to VA to get my mags (BIg Dogs Outfitters, very nice place, ammo a bit high, but everything else was reasonable) and it was hilarious. "Casino market!!!" "Gamification!!!!!". You all just dont like anyone else playing in your sandbox, and shorts can screw right off. The "well, we find weak companies" argument is like you are Dexter, only you kill 10 good people for every bad person you kill. Once you start shorting, you put your thumbs on the scale to make sure that company never comes back up.
Bidens regulators are going to ba faced with a choice here, and I'm damn sure it wont smell like unity.
Bidens regulators are going to ba faced with a choice here, and I'm damn sure it wont smell like unity.
Tilted
..
I've long steered away from giving advice regarding individual stocks. But when it comes to GameStop I'd recommend people avoid getting caught up in the furor. Yes, you could get lucky with timing and make some money. But you could also get burned bad, unless you have an inside track on when the net pumping will end and the net dumping will begin.
I'm not sure how this move got started - as a sincere populist push back or as a designed crowd-sourced pump and dump using clever branding to get unwitting people to assist with the scheme. Regardless, at this point it is a crowd-sourced pump and dump. Some people will likely make a lot of money at the expense of naive late-to-the-partiers. The valuation GameStop has reached - at nearly $500 a share in pre-market trading this morning - is ridiculous and the trading volumes have been ridiculous, especially considering how much of the company had previously been held by institutional investors. I don't know when the bubble will burst - maybe today, maybe tomorrow, maybe next week... But, a lot of people are going to get burned here, while some clever people - who either saw an opportunity or contrived the whole thing - will make out like bandits. And the hedge funds which previously held large positions in GameStop will also make out - they'll get to sell their shares at hyper-inflated valuations.
I'm not sure how this move got started - as a sincere populist push back or as a designed crowd-sourced pump and dump using clever branding to get unwitting people to assist with the scheme. Regardless, at this point it is a crowd-sourced pump and dump. Some people will likely make a lot of money at the expense of naive late-to-the-partiers. The valuation GameStop has reached - at nearly $500 a share in pre-market trading this morning - is ridiculous and the trading volumes have been ridiculous, especially considering how much of the company had previously been held by institutional investors. I don't know when the bubble will burst - maybe today, maybe tomorrow, maybe next week... But, a lot of people are going to get burned here, while some clever people - who either saw an opportunity or contrived the whole thing - will make out like bandits. And the hedge funds which previously held large positions in GameStop will also make out - they'll get to sell their shares at hyper-inflated valuations.
Toxick
Splat
I've been following this story and I've been on reddit for the last two days following this, and it very much appears at this point that it's not about money, it's about sending a message, particularly to Melvin Capital, who is currently taking the brunt of the current ass-pounding. And I can't say that I'm sorry for them. It looks like they've destroyed a lot of people, and they've been shielded by corporatist machinations up to this point. Now their losing at their own game. **** 'em.
If I had the first clue about daytrading and how the stock market worked, I'd throw a thousand bucks or so that way. I would never advise anyone to risk more money than they can actually afford to lose. It's all always a gamble. But, I'd love to see the little guy use the free market to butt**** a corporate player who desperately deserves it.
With that said - Who wants to take bets that congress passes some shady-ass legislation to protect their corporate masters.
... BEFORE you get your stimulus checks.
I bet that something gets set in motion today.
I can only hope that if that happens people FINALLY wake up to the reality of where they stand in the eyes of congress. The peasantry does not matter to these ****ing people.
Toxick
Splat
The media are trying to portray a lot of these reddit people ("reddit bros"
) as alt-right extremists and Trump supporters.Are you kidding me? Reddit is a festering sewer of Socialists, Commies and authoritarian leftist nut-cases. The kind of people for whom the media normally massages their taints (although, I'm kind of rooting for them in this one). It's hysterical watching the media machinations today.
I hope they're as transparent to everyone else.
My guess there's too many people saying things like "What's a game-stop? The only hedgefund I know of, if is gas money for my clipper!"
kom526
They call me ... Sarcasmo
The usual suspects have opened up their respective stupidity dispensers and they are blasting the hedge fund houses. They are using today's phrase that pays which is "personal casinos" to plant the seed of increasing government oversight on the investment companies.