EC AMC Illustrates Market Insanity

This is another one of those decentralized stock pumps I wrote about earlier in the year.

I don’t see the GME phenomenon and other squeezes as revolutionary. They are remarkably well organized — and decentralized — stock promotion campaigns. And I do believe that WallStreetBets and other retail trader groups will continue to rise in power and influence. I will continue to follow their activities with great interest, rooting for them to make “tendies” (tendies = chicken tenders = profits in WallStreetBets lingo). 

It’s a fascinating phenomenon, but it does make me worry about where we are in this cycle. Towards the end of bull markets, retail investors almost always get heavily involved. They make a bunch of money — and then they lose all or most of it. 

Just to be clear, I am NOT saying you should short AMC. This craziness could continue for some time. I have no position in AMC — long or short. And I don’t recommend getting involved in this stuff unless you’re a professional with an amazing trading track record. 

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Disclosure: I have no position in AMC — long or short.

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Beating Buffett 2 months ago Member's comment

Good read, thanks.