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Day-trading Reddit readers nearly crashed the stock market. Now they’ve been packaged into a new ETF.

https://www.marketwatch.com/story/the-meme-stock-drama-gets-the-etf-treatment-11614723514?siteid=yhoof2

 

What are your thoughts?

 

My thoughts are, trees don't grow into heaven, and the boat only floats until it sinks.

 

Stock markets and crypto currencies have been way overvalued since the corona crisis started.

 

Gamblers on Reddit and other platforms have manipulated prices to unrealistic values. How can stocks be at all-time highs with a worldwide economy in the gutter, and no recovery in sight in the near future.

 

If you had a look at the stock market the last few days, you will see that a few major investors have bailed out on stocks like Tesla and Virgin Atlantic, among others.

 

Virgin Galactic Chairman Chamath Palihapitiya sells off remaining personal stake in the space company.

 

https://finance.yahoo.com/news/virgin-galactic-chairman-chamath-palihapitiya-130946769.html

 

Tesla Megabull Ron Baron Says It Was 'Painful' To Sell 1.7M Shares

 

https://finance.yahoo.com/news/tesla-megabull-ron-baron-says-142046385.html

 

But the gamblers don't know about stopping yet.

 

I think the mother of all market crashes is closer than ever before, and may be on the cards before the end of this month.

 

What do you think?

 

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38 minutes ago, Susco said:

Day-trading Reddit readers nearly crashed the stock market. Now they’ve been packaged into a new ETF.

 

No, the Reddit day traders didn't almost crash the stock market.  It was the hedge funds that shorted the stock(s) to the tune of billions of dollars more than they could afford to lose.  (And the exchanges that allowed them to do it)  None of the Reddit day traders made any bets that went beyond their ability to make good any losses.  They don't generally let the little guys do that.

 

Beyond that, I agree with you.  They have created yet another nonsensical way to gamble in the market that has nothing to do with fundamental value.

 

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5 minutes ago, impulse said:

No, the Reddit day traders didn't almost crash the stock market.  It was the hedge funds that shorted the stock(s) to the tune of billions of dollars more than they could afford to lose.  (And the exchanges that allowed them to do it)  None of the Reddit day traders made any bets that went beyond their ability to make good any losses

 

I'm not sure I agree on that with you. Gamestop was one of the first stocks that the Reddit crowd pulled to unrealistic levels.

 

350 US$, many people have lost fortunes. A few weeks ago I posted a story about a billionaire investor who lost 8 million USD, or 80% of his investment in the stock, in just a few days. He will survive, but how many small investors lost 80% ?

 

image.png.3730f9787ba181814717511ab054dbbd.png

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1 hour ago, Susco said:

 

I'm not sure I agree on that with you. Gamestop was one of the first stocks that the Reddit crowd pulled to unrealistic levels.

 

350 US$, many people have lost fortunes. A few weeks ago I posted a story about a billionaire investor who lost 8 million USD, or 80% of his investment in the stock, in just a few days. He will survive, but how many small investors lost 80% ?

 

image.png.3730f9787ba181814717511ab054dbbd.png

 

While I neither do agree with what Rediters are doing (aka, bump and dump). Certainly those big guys which have turned Wall Street into a casino, do deserve the losses they are seeing thanks to the reditors. 

 

I have no time or will to write a bible here, so I'll just leave a video here (from a mechanic, though certainly a smart person), on his opinion about this whole thing. Which happens to be pretty similar to mine.

 

 

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I think there are clearly bubbles ready to burst in areas of the investment universe ... crypto currencies, technology like Tesla, etc. But on the other hand you will find beaten down stocks that are set to benefit from the Covid-19 reopening end game ... travel, leisure, airlines, hotels, etc. The UK market is historically cheap. 
 

I suspect we will see something similar to the dot com bubble, where money flowed out of growth and into value. The difference between the two is historically high. If inflation takes off I would expect financials and commodities to do well. 
 

So whilst I can see bubbles bursting I don’t think we are looking at a crash in every area of the market. 

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2 hours ago, Susco said:

Day-trading Reddit readers nearly crashed the stock market. Now they’ve been packaged into a new ETF.

https://www.marketwatch.com/story/the-meme-stock-drama-gets-the-etf-treatment-11614723514?siteid=yhoof2

 

What are your thoughts?

 

My thoughts are, trees don't grow into heaven, and the boat only floats until it sinks.

 

Stock markets and crypto currencies have been way overvalued since the corona crisis started.

 

Gamblers on Reddit and other platforms have manipulated prices to unrealistic values. How can stocks be at all-time highs with a worldwide economy in the gutter, and no recovery in sight in the near future.

 

If you had a look at the stock market the last few days, you will see that a few major investors have bailed out on stocks like Tesla and Virgin Atlantic, among others.

 

Virgin Galactic Chairman Chamath Palihapitiya sells off remaining personal stake in the space company.

 

https://finance.yahoo.com/news/virgin-galactic-chairman-chamath-palihapitiya-130946769.html

 

Tesla Megabull Ron Baron Says It Was 'Painful' To Sell 1.7M Shares

 

https://finance.yahoo.com/news/tesla-megabull-ron-baron-says-142046385.html

 

But the gamblers don't know about stopping yet.

 

I think the mother of all market crashes is closer than ever before, and may be on the cards before the end of this month.

 

What do you think?

 

You better not look at the latest bubble then, some virtual land prices are going up %100s. I brought some nice land in Thailand, part of a gold mine in South Africa and a tin pit in Mexico that's all slowly rising.

 

Nothing invested I can't afford to lose

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I heard a story about funds which have strict percentage limits of the fund that a particular stock can grow into, this might be a problem if something goes up a lot in a short period of time.

 

I believe this is why funds rebalance to ensure the risk is spread across many companies and whichever sectors they specialise in but I guess that's up to each fund and they will all have their own rules.

 

When one or two of them suddenly skyrocket compared to others the rebalancing will require a certain amount of selling...

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1 hour ago, bartender100 said:

You better not look at the latest bubble then, some virtual land prices are going up %100s. I brought some nice land in Thailand, part of a gold mine in South Africa and a tin pit in Mexico that's all slowly rising.

 

Nothing invested I can't afford to lose

Very wise mate, Wall Street should be renamed Fraud Street.

Without Fraud Street, America would have zero GDP.

Tangible assets is the safe way to move.

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On 3/6/2021 at 4:46 AM, talahtnut said:

Tangible assets is the safe way to move.

Only if there are tangible buyers.  Without buyers, what's your "tangible asset" worth?  

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