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Showing posts from January, 2021

GameStop Stock is Proving that the Rules Have Changed

Shares of GameStop Corporation have been on fire recently, and it's caught the eye of investors old and young. The majority of the gains have been attributed to the infamous WallStreetBets community on Reddit. GameStop was publicly ridiculed not more than a few months ago for not having enough long shares to be lent out for short selling. Short interest has been through the roof for a while now, and as of Friday's close, the borrowing rate for GameStop shares was $23.50, about 35% of the share price.  Some call it The Robinhood Effect, others simply call it a cramped bandwagon. Either way, this GameStop foolery has shown the power of retail investors. Generally, market movers and institutions have been the go-to scapegoat for funny business in the stock market. This, however, is a clear indication of how much influence small retail investors can have.  And who can blame GameStop short sellers? GameStop has been clinging to brick-and-mortar stores with a death grip that has drag

Why Altcoins Make For Bad Investments

  Bitcoin's recent run has ushered in yet another wave of loud-mouthed permabulls. Generally, the emergence of these fair-weather fans is directly correlated with the price of Bitcoin. Since Bitcoin's recent run-up, however, many altcoins haven't performed to par as they did in late 2017, when they skyrocketed alongside Bitcoin's run to its previous all-time high. Bitcoin, in the past two weeks, has pulled back somewhat from new all-time highs, which begs two questions: Will altcoins follow suit, and if so, which one/ones? Bitcoin and altcoins are in unchartered territory, from an investment standpoint. They are not commodities, because they don't exist physically. They cannot be considered property for the same reason. The argument of them being a realistic currency is hard to make, as currencies shouldn't make 3-7% jumps overnight. It is also not a stock, security, or equity, since its ownership comes with no privileges.  So, from an investment perspective: wh