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Originally Posted by GrussGott
Speaking of fundamentals ....
Fun Wall Street Action:
For those not financially nerdy, a bunch of hedge fund guys decided that Gamestop was gonna go bankrupt because people buy video games online not on disc at stores like Gamestop; so, based on fundamentals, the hedge fund guys shorted Gamestop (i.e., borrowed a bunch of shares and sold them).
Well, the r/wsb decided that was a pile of shit so they piled into Gamestop incl using leverage & call options - the buy volume got so huge gamestop trading was stopped 9 times during the day and at least 1 of the hedge funds has needed a bailout in the billions (shorts have an unlimited downside unlike owning a stock).
Anyhoo, I think it's going to be awhile before "fundamentals" investing works.
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😂 This is your evidence against fundamentals?
Stuff like this is going to happen. And it’s going to end badly for many, most of them on main street. And Melvin too. It is also rumored another hedge fund is on the long side, meaning it’s not just retail investors driving this.
If you want to make a career out of trades like this, best of luck.