Wow- 2021 is already becoming very interesting-
Looks like 2021 is saying you thought 2020 was crazy?!
You will see-
By now, everyone has heard how Game Stop (GME) got into a super short squeeze and burned a bunch of short hedge funds.
All orchestrated by small investors through reddit and other online forums-
Wow- this is unprecedented. The day when small investors burn the hedge funds-
Usually, it’s the other way around but wow-
This is only possible because of zero commissions, stimulus money, and people staying at home and trading more.
Those who got in early made good money- BUT!
In the end, this won’t end well. At the end of the day, reality wins.
There will be a day when the last fool cannot sell to a new fool.
Then financial reality and bad business become real and the stock collapses.
I am not sure how long GME will be pumped by the short squeeze but don’t enter now because it can just drop like a rock.
If you are in GME, good for you, cash in now and you will be quite happy 😀
Please don’t follow the herd, you may seem to be safe but mindless following without rigorous analysis will separate you and your money quite quickly.
I won’t be surprised if more short squeeze plays are done by coordinated individual investors- And yes money can be made. I won’t be surprised if some hedge funds jump in on the trade-
But at the end of the day, reality will kick in and bad company stock will drop and whoever is holding will suffer…a lot.
Interestingly, today AG had it’s own herd rush in and jumped 30%+ I sold some of my AG because it was 30%+ return. Still I kept most of position because silver miners are still undervalued- So investing for the long run-
Hope the markets come back to normal somehow- With all the money printing, hedge fund manipulation, and now even herd manipulation…it will take some time but in the end, the markets will restore its efficiency.
Thank You Jesus for a blessed day. Let us always be awake and discerning and share Your love Amen-
Rejoice at all times. Pray without ceasing. Give thanks in every circumstance, for this is God’s will for you in Christ Jesus.
1 Thessalonians 5: 16-18
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