This trend can offer strong returns while we wait for the greater market to regain its upward momentum. This week we saw a lot of movement into industrial, energy, financial, and travel stocks. Value stocks will likely continue to outperform the greater market in the short term as choppy conditions pervade and rising bond yields drag on growth sectors. I am even buying them now as tech stocks take it on the chin because I know in the future they will be worth three or four times the price I’m getting them at today.īut at the same time, I’m also rotating some funds into value plays. Don’t Fight the Rotationįor the next 20 years, I plan to be a heavy buyer in growth and tech stocks. Here are some strategies to consider moving forward. This year, we’re going to have to employ some different tactics and be more proactive to stay ahead of things. If you’re not a Reddit or Wall Street insider and you’re not careful, your portfolio could wind up underwater. We are a major disruptive force.īut until this shift in the balance of power finds an equilibrium, investors can expect significant sideways chop in the market. Looking at things from a broader investment perspective, it’s clear the retail investor is a more powerful entity than it ever was before.
When hedge funds can naked short sell en masse, why shouldn’t the everyday retail investor be able to galvanize and exercise the same market-making power? What amazes me most of all is how the GME Reddit mafia has managed - for the most part - to stick together. I don’t blame them for thinking that way. But for the mass of retail investors who are buying on nostalgia and a shared “f*ck Wall Street” mentality, that doesn’t matter.įrom Yahoo Finance's homepage this morning:
Shares of the stock hit as high as $172 this week before settling back down in a range in the $130s early Friday, a price well beyond the company’s true value. On cue, the GME Reddit mafia is back and rallying, refusing to "go gentle into that good night." Unusual options activity and an odd picture of a McDonald’s ice cream cone tweeted by activist investor Ryan Cohen - a major shareholder and member of GameStop’s board - sparked the action. In a surprise move, GameStop (NYSE: GME) shares soared Wednesday afternoon and again during trading Thursday. I thought this story would be dead by now… but the madness is actually far from over.
0 kommentar(er)
