4chan larps a lot. They have an analysis that we could see a massive cascading crash result from these retarded hedge funds. Is that a real possibiilty due to risk being spread out amongst banks + copycat short sellers, or is 4chan full of shit again?
No. And maybe, but No. If the hedge funds have so many short positions , and the market is already priced fairly. they will just have to buy back the positions to bring their holding to neutral. And this will take the pressure off the individual stock and allow the stock to.jump.up, because there was less short pressure on the stock.holding it down.
But tons of volume and trades all at once that does something too quick with too much money. Could flood the market and cause prices to jump around and dance. I dont think it would crash the market but it could make the market dance and bounce around.
However there could be dumbass people who see something wild and experience tons of volatility and they could emotionally panic and if enough people get scared , it creates the domino effect ( March 2020) but that isn't based directly on gamestop.
Plus securities ultimately have their intrinsic values , if you boiled them down they have a value from real estate cash. Inventory etc. So they do have support levels , so its not like they could ever goto $0 .
All these things are short term, temporary possibilities. You shouldn't be concerned if your saving for retirement in a proper diversified allocation
I will also say. Those hedge funds are smarter than me. 100x . So if they keep being assholes and messing around with everything ( kind of like 2007) eventually they are gonna cause some damage somehow. So I dont like them, they are not playing the game correctly, they are being sneaky have access to all the money and all the technology. Its an awful advantage and they play around with crazy instruments , and technically you should remember money isn't created out of thin air.
For every dollar the hedge fund makes, it came from someone else. (There is no new money)
4chan larps a lot. They have an analysis that we could see a massive cascading crash result from these retarded hedge funds. Is that a real possibiilty due to risk being spread out amongst banks + copycat short sellers, or is 4chan full of shit again?
No. And maybe, but No. If the hedge funds have so many short positions , and the market is already priced fairly. they will just have to buy back the positions to bring their holding to neutral. And this will take the pressure off the individual stock and allow the stock to.jump.up, because there was less short pressure on the stock.holding it down.
But tons of volume and trades all at once that does something too quick with too much money. Could flood the market and cause prices to jump around and dance. I dont think it would crash the market but it could make the market dance and bounce around.
However there could be dumbass people who see something wild and experience tons of volatility and they could emotionally panic and if enough people get scared , it creates the domino effect ( March 2020) but that isn't based directly on gamestop.
Plus securities ultimately have their intrinsic values , if you boiled them down they have a value from real estate cash. Inventory etc. So they do have support levels , so its not like they could ever goto $0 .
All these things are short term, temporary possibilities. You shouldn't be concerned if your saving for retirement in a proper diversified allocation
I will also say. Those hedge funds are smarter than me. 100x . So if they keep being assholes and messing around with everything ( kind of like 2007) eventually they are gonna cause some damage somehow. So I dont like them, they are not playing the game correctly, they are being sneaky have access to all the money and all the technology. Its an awful advantage and they play around with crazy instruments , and technically you should remember money isn't created out of thin air.
For every dollar the hedge fund makes, it came from someone else. (There is no new money)
And that someone else is one of us