FTSE & DOW slide because of Reddit users!

Will_Do

I'm not into high risk strategies (aka gambling) but it feels like now would be a great time to buy some put options. This bubble is going to burst big time and pretty soon.

Alexland

Alexland said:

Futures are predicting that the Dow will open at 30k wiping away a couple of months gain.

Futures improved during the day and Dow opened around 30.4k and now nearly 30.9k at time of writing.

Type_45 said:

I've sold everything!

Hope you didn't.

sevenhills

https://www.thelondoneconomic.com/business-economics/gamestop-are-shorted-uk-firms-next-to-see-huge-share-price-growth/28/01/?fbclid=IwAR1RqUOUlcQZjdVoNCrLS3MsCaGLCHB3ZrKC8Ol0iaMIJOvK1Z15qm_b0Go

I did have shares in Cineworld Group, but got out as I thought they were too risky.

I was surprised to see them higher, but they are a international company. Maybe there activities abroad are more profitable.

I dont have any on that list, all shorted downwards?

[Deleted User]

HCIMbtw said:

Deleted_User said:

Utter nonsense, a few people on Reddit investing a few million dollars is literally drops in a puddle compared to funds like BlackRock with trillions in assets. What they are doing is screwing with an unethical practice (shorting) by raising the stock price forcing hedge funds to either stop shorting or take a (small) financial hit. More power to them I say, someone riding the train buying GME at $5 which is now worth $150 and making a profit (saw one guy spent $3m when the share was around $20, and now it's worth $20m) is playing the market just as the funds do. Your ISA dropped because of the hedge funds behaviour not because a handful of people beat the market temporarily.

A few people on reddit is currently >4m people on one of the main forums.. and the money is not a drop in the ocean, indivudal investors with 10s of millions.. and some larger private investors are also involved.. 

I do not think it is understating it to say this particularly case will change the future of investing 

The sub has 4m followers, not 4m investors for pity's sake. Many subs like that, r/Politics has over 7m, they're not all politicians. They're also not all millionaires buying millions of shares. DFV spent $50,000 a year ago, now that was worth $5.7m. A bunch of people had holdings worth $20,000 or so etc. Drop in the puddle (as I said, not drop in the ocean like you pretended I said)

BananaRepublic

America gained yesterday, Europe and UK fell. Most likely due to the EU vaccine shortfall and the EU’s attempts to bully the suppliers. Had they not been so slow ordering, unlike the UK, the manufacturer would have been up to speed by now. 

Malthusian

Will_Do said:

I'm not into high risk strategies (aka gambling) but it feels like now would be a great time to buy some put options. This bubble is going to burst big time and pretty soon.

"I'm not into betting but there's no way Man U can lose the title with an 8 point advantage and six games remaining"

Although to be fair, if you only feel like you should buy put options but don't actually do it, you're telling the truth about not being into gambling. Everyone has dark fantasies; if you don't act on any of them you win the label of "nice person".

BananaRepublic

Will_Do said:

I'm not into high risk strategies (aka gambling) but it feels like now would be a great time to buy some put options. This bubble is going to burst big time and pretty soon.

I've seen at least one forecast from a major US bank predicting a boom once lockdown ends due in part to people once more being able to spend, and in part because the governments are flooding the markets with money to support the economies. Of course it will come tumbling down, but not for a few years, and how badly is to be determined.

Of course this prediction might be way out, but it indicates that we simply don't know and assuming that it will burst soon is asking for trouble. They said that for many years pre 2008, and those who stayed out of the markets lost out in the long run. In other words, timing the markets is gambling pure and simple.

Grenage

The Reddit malarkey is amusing; it's being hailed as David vs Goliath - the little man sticking it to the fund managers.  Popular sites such as imgur are full of people cheering about poor people hurting fund managers.

I'm somewhat more cynical; it just looks like a massive pump and dump.  The original manipulators will have cashed out by now, the hedge funds will quite possible open new shorts at the higher price, and a lot of people who bundled in will be left holding the bag.

quirkydeptless

"Fed up of bouncing. Damn those Reddidiots!" - Ded Katt

Malthusian

BananaRepublic said:

Of course this prediction might be way out, but it indicates that we simply don't know and assuming that it will burst soon is asking for trouble. They said that for many years pre 2008, and those who stayed out of the markets lost out in the long run.

In fairness they did get to tell everyone down the pub how 2008 showed they were right all along, while trying to cadge drinks off their richer, wronger friends.