Populism Comes For The Stock Market
One of the most ridiculous weeks in recent memory ended with a flourish, as US equities careened lower, turning negative for 2021 in the process.
By Friday afternoon, most pundits had exhausted the thesaurus. Synonymous for "absurd" were all used up.
This was the week when populism came for the stock market, aided and abetted, ironically, by billionaires. "You can't sell houses you don’t own. You can't sell cars you don't own. But you can sell stock u don't own!?," Elon Musk tweeted, feignin
None of the above in my Bio. I will add that I did not predict most of this but when observing the action I can say that these are all (probably unintended ) consequences and there is much more to come. No system can constantly move the goalposts ,change a large percentage of the rules and then take a disclaimer on the inevitable result.
I’m with the clickbait explanation. Considering that rage capital for Donald Trump is virtually spent. Another object of rage is needed to generate clicks.
Many of the same people that have been clamoring for the reintroduction of wolves in Yellowstone are now calling for the death of bears on wall street. What they don’t realize is that they serve the same function. Overgrazing by ungulates of any subspecies will destroy the entire ecosystem. The ecosystem supports all life whether it be fiscal or biological. Once Blackrock and the other predatory hedge funds, operating behind the cover of Robin hood, destroy the equilibrium of price discovery we will have a short term euphoria before the entire financial system collapses. But once again they will blame it on folks that just wanted a really tasty avocado toast.
I was cleaning out my desk last weekend and found some old E*Trade statements from 1998, 1999, 2000. I sat back in my chair and unfolded the faded statements with a wry smile. Just what exactly what was I trying to prove back then?
I obviously had no idea. I just knew I was onto something much like the Redditors and quickly found out (the hard way) the mirage had a wry smile of its own. Beginning to wonder if that same mirage awaits in this case – or is this time different? Anything goes I suppose.
One would think after seeing guns drawn inside the Capital building that I would be shocked by this week’s events. Instead I just sat back in my chair and watched the after hours volume on GME tick faster than the debt clock. Anything goes…..
This afternoon when I left the house and wrapped the frayed white mask cord around my ears I was once again reminded….Anything goes……….
Monday morning will start like the 100 did before it, coffee, Bloomberg, an email or two, a glance out the bay window wondering how to position for what lies ahead. Down Friday + Down Monday? And if so, what will that mean in this (new) environment? Who knows. Anything goes.
So I am 100% with you when you feel like there “should” be more to say – but there isn’t.
Just remember when you light up on the deck in the Monday mist, at some point during the day many of us will be right back here to make sense of it all.
No pressure right?
Anything goes.
H-Man, it appears Robinhood is going to the gallows unless the Merry Men rally to save the day.
Millenial and GenZ money will move from Robinhood to Sofi app, I do think.
‘We’ll see’!
I wonder how many of those people on Robinhood who claim they are the champions of the poor realize how their “sticking it to the rich /Hedge Funds” could potentially really end up damaging the accounts of those of us who are living in the middle ? What happens to those who year in and year out have dedicated a percentage of their “average” salaries to their 401k and/or IRA’s ? I happen to be one of those. I don’t have a fancy lifestyle by any means however no matter how small my wages I took the time to learn about investing and sought sound advice from others so that I would understand what was going on in my own portfolio. In fact I first ran across “Heisenberg” on seeking Alpha many years ago while simply trying to learn.
A friend of mine called me last night to tip me off that Dogecoin was being pumped. I jumped in and, I have to admit, it was pretty fun participating in the absurdity. It helped that I was able to walk away with 38% despite a brokerage app (Robinhood) that started to crash under the weight of the volume.
Then, today, I jumped on the AMC bandwagon for a spell.
This week is one for the history books. Absurd indeed.