61–70 of 326 posts
I want us to get back to reality and fundamentals. These days it feels like the entire fabric of society is falling apart.
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All this retail interest in meme stocks is gambling, plain and simple. More people entering the market creates a Ponzi effect where new entrants pay for the gains of holders, but by definition this is unsustainable. You can see this basically everywhere in the economy but the meme stocks are the most obvious. Not financial advice, I thought Tesla was laughably over valued at $40 a share, never bet more than you’re wi…
Investing in any stock is gambling, plain and simple. The only difference is your risk tolerance. Remember when it was impossible for real estate investments to lose money 15 years ago?
It's not worth discussing BTC, TSLA, GME, or HTZ. That is missing the forest for the trees. The degradation of even the appearance of an orderly market is the story. The money movement (volume of excess trades X magnitude of price change) seems out of reach of unleveraged retail. Faith in private and public institutions is justifiably poor, but also under organized attack. This is going to end badly for everyone, exc…
IMO, it's good that people are beginning to see the stock market as a casino. If people want to "invest," they'll figure out more pro-social ways to do it than the stock market, and if they want to gamble, well, there's always the stock market.
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I agree that TSLA is irrational, and I think that this is true regardless of whether you think there are more gains to come. My impression of TSLA investors is that many of them just want to be a part of the future, and many others are trying to make money off the volatility & irrationality.
I think the cult of personality plays a part in it, too. Tesla makes cool, futuristic cars and has a rabid user base (and even a rabid fan base of people who can’t afford to be users) but even still I don’t think the valuation would be anywhere near where it is today without all of the Musk super fans & Musk initially fanning the flames with his war against short-sellers.
I think TSLA and AMD were the original meme stocks.
The South Sea Company was the original meme stock.
I want us to get back to reality and fundamentals. These days it feels like the entire fabric of society is falling apart.
"In the short run, the market is a voting machine but in the long run, it is a weighing machine." https://www.goodreads.com/quotes/831517-in-the-short-run-the...
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It’s all gambling. People need to stop expecting to strike it rich and just build wealth incrementally. Central banks have made that hard to do though with historically low interest rates and rising risks of inflation.
Sounds like advice for a previous generation. Then, it contradicts itself by say why it won't work (correctly). Maybe its time to rethink those half-century-old memes like 'build wealth incrementally'.
Nothing has changed except central bank policy encouraging rampant speculation. The bull market won’t last forever and every generation thinks the fundamentals don’t matter anymore, until suddenly they do. To be fair it is extremely hard to build wealth incrementally these days because of central bank policy, but it’s way better than yoloing life savings.
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Those at least had a growth story. HRTZ and GME are pure plays on the other hand.
Where did you get this about GME? It literally skyrocketed once Chewy team started to take over and transform company.
They are a physical store that sells physical games.
Physical stores are in dire straits.
Some new game consoles don’t even use physical games, namely the base PlayStation and Xbox.
What do you even transform into? A dedicated amiibo shop? The future is pretty obviously download-only for games.
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Like most stocks BTC's value depends on the buyers hope of a rise of the value. Buy low and sell high. For the original function of stocks, support a company and get a share of the profit, you are right about BTC.
That’s not really an accurate comparison. Stocks are ownership in a company, which is still subject to all of the realities of operating a company. We can’t simply continue trading Hertz stock as a speculative gamble when the company goes under. Yes, cycles of hype and supply and demand do distort stock prices, but it’s still a capital allocation market. GameStop can choose to sell shares into the hot market, much as…
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That seems like a bit of a simplistic view spurred on by people who don’t know what Chapter 11 is. It’s not “we don’t have any more money” or “we aren’t making any money”, it’s “we need a little court-mandated breathing room (from our creditors) to change x, y, and z, and then we’ll be ok”.
"and then we'll be ok" More like: "and then we'll pay back as much as we can to our creditors, and then if there's still money left at the end we might be ok"