Wall Street craziness persists— get-rich-quick options, tech stock only rallies, cloud stocks, cryptocurrencies, bonds paying less interest than inflation, bubble Stock prices, green energy hype, electric cars, blockchains, and ETFs for anything. Is this investing or gambling?
Then there are short sellers everywhere… ganging up, betting stocks will go down, then making it happen.
Wall Street researchers, analysts, the media, and the Austin Report editors can’t make sense of a global pandemic and a financial disaster—with Stock Markets trading at all-time highs.
Apparently, investors are also seeing the handwriting on the wall. Bank of America Global Research published on Tuesday 1/26 that clients sold a net $5.2 billion in stocks last week, the 5th-largest weekly net equities outflow — which measures the difference between stock purchases and stock sales — since 2008. Reports are that private clients, hedge funds, institutional clients, were sellers into market highs.
It feels like the old Wall Street is rapidly turning into the world’s largest casino with Robin Hood day traders and the like.
Trading has been so wild on days this week that online brokerages broke the internet. Robinhood, E*Trade and Fidelity had delays and glitches as day traders were transfixed by wild swings in heavily shorted stocks (like GameStop).
TD Ameritrade even halted some transactions.
This week, a surging throng of traders ganged up in internet chatrooms and shared a plan to squeeze certain firms out of business. Is that a conspiracy? Is it legal? Or is it just a new Wall Street, a free market?
End result: The traders made a ton of money with GameStop skyrocketing 135%. Other Reddit favorites, like AMC and Express, also soared. Those shorting the stock reportedly lost Billions, yes Billions!
What’s Next at the Stock Market Casino?
A really ugly day. Here’s the way the markets closed.
It’s the Crazy Before the Crash
The longer this Stock Market craziness goes on, the worse the coming correction.
Parabolic rises like we’ve seen in the past year always end badly for Stock investors, even the normal institutional investors, not just the gamblers (traders) who believe there is no downside market risk.
We feel the level of speculation (gambling) is so extreme it will take many months for the market to head back to a more neutral level. Today, there is a battle of traders trying to take over completely. The old Wall Street who values companies that create sales and growing profits is in a fight for its life.
As long as the Stock Market trades wildly, we will patiently sit on the sidelines— we have no FOMO, no fear of missing out. We fully understand the concepts of risk vs reward— and investing vs gambling.