GameStop Winners and Losers
James Busterud - Founder
Early in my finance career, my mentor and I took a trip out to Shea Stadium to watch a then competent NY Mets play baseball. It was late in the summer of 1999 and what I remember most about that day was the invaluable tip my friend gave me. He told me to look up at the scoreboard and tell him what I saw. I looked up and realized the area of the scoreboard normally displaying players’ statistics had been ‘hijacked’ and converted into a NASDAQ ticker. We sat there amazed and appalled to see the symbols WCOM, CSCO, BRCM, etc. scroll along. He simply said, “top of the market.” While he was early by 6 months, (the top of that bubble came the following February and was marked best by the Time Warner/AOL merger in January), he was dead right to point out the glaring inflection point evidenced by that scoreboard. When Wall Street becomes the lead story, and everyone is talking about it, watch out below.
Have we arrived at last at another inflection point? That’s a tough one. Anyone who says they know what will happen tomorrow, is making it up. What is undeniably clear is that the US stock market is, by historical standards, very expensive. We also know it is on the tip of everyone’s tongue. When my 17-year-old asked this past week for his social security number so he could open a Robinhood account, I had my inflection point. Watch out below!
Short Term Winners and Losers
Winners: Reddit, Robinhood, DeepF----ingValue, countless unsophisticated speculators
Losers: those betting against GameStop
Long Term Winners and Losers
Winners: those betting against GameStop
Losers: Reddit, Robinhood, DeepF----ingValue, countless unsophisticated speculators
Disclaimer: This post is made for educational purposes only. Past performance is not necessarily indicative of future results.