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On Thu, 28 Jan 2021 08:53:15 -0500, Keyser Söze
wrote: Individual investors have ganged up on some short-selling hedge funds, and the results for the funds aren't pretty. Too funny. === That's not necessarily a good thing but I understand the emotional appeal. Hedge funds are run by very smart guys who take a highly analytical and unemotional look a company's finances before making investment decisions. Individual investors in many cases are making their decisions based on internet discussion forums which are ruled more by loud talkers than by rigorous analysis. The net result is that stock prices get inflated over the short term, well beyond their intrinsic values, a classic speculative bubble. This can be very exciting for a while and stories spread about overnight millionaires and the like. It always ends badly however with a lot of relatively naive people losing almost everything as valuations come back to earth. It can be a lot of fun while it lasts but you need to keep your parachute handy and know where the exit doors are. |
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