(01-27-2021, 06:21 PM)jagibelieve Wrote:

(01-27-2021, 05:56 PM)KingIngram052787 Wrote: It's not really that basic of an example, it's pretty much exactly what's happening but in much larger volumes and with large hedge funds being the ones shorting the stock.

I kind of think it's hilarious, a bunch of nerds on reddit are costing a bunch of billionaires on wall street a lot of money.

It is kind of funny on the surface, but don't expect it to last long.  Trust me, it's not just a "bunch of billionaires on wall street" losing a lot of money.  Many don't realize that their 401k's probably have a stake in some of the hedge funds that took a huge loss.

Research the dot-com bubble in the late 1990's.

The other thing to look at is the amount of "borrowed" money in the stock market right now.

I agree, but it still makes me chuckle.

My 401k, IRA, and brokerage account took a beating today, but I mostly just invest in index funds/ETFs/mutual funds and a few select stocks here and there, the big names you would suspect.  But, I'm also only 33, so not a whole lot to worry about over time, so to me it's still kind of funny.

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(01-27-2021, 06:46 PM)HURRICANE!!! Wrote:

(01-27-2021, 06:01 PM)Jags Wrote: That’s a good explanation.  I understand what you’re saying except one thing.  Are these Reddit people artificially inflating it because it’s been shorted? Make money and screw some investor over? Is this something that’s mutually exclusive or no? one doesn’t need to happen for the other to happen, right?

That was a great explanation, comparable to the one I heard on CNBC today.

Yes, the investors on Reddit conspired to target companies that have been extensively shorted, knowing those that are taking the hit will need to buy more stock (as it is going up) to hedge their losses. As such they actually created a big time demand coming from the ones that got screwed the most.

The people that came up with this are math/finance wizards so I personally think it's ignorant to call the Reddit group of investors amateurs and such.

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(01-27-2021, 06:28 PM)jagibelieve Wrote: Just my opinion and guess.  I think that the Reddit people (and others) started playing a very dangerous game that they (as well as many others) will lose.  Sure some of them might make some money in all of this, but what is happening is heading towards another big crash.

Disagree.  The Reddit investors got in early.  The short investors came in later and drove the price up even further.  There will be a selloff but by that time, the Reddit investors already made a ton of $$.

I agree, but I'm sure a lot of non math/finance wizards who catch wind of this are going to go and try to play and lose their butts!

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