GameStop & More

The saga with Game Stop (GME) and the others has been amazing to watch play out. Who knows how far it will go or how long it will last but it is a good bet it ends badly for the last people in or the people who stay around too long. I don't claim to have any unusual insight but I can envision there being a lot more going on here than meets the eye. For example, it looks like Citadel looks to have generated a ton of revenue in the last week making a market in GME. Where part of the sentiment behind r/wallstreetbeets is sticking it to the suits, sticking it to Wall Street types, it doesn't get more Wall Street types than Citadel.

It now appears the Reddit crew believes going after silver can hurt the banks and so silver might skyrocket at least temporarily. Trying to game these market distortions isn't my trade but it should be clear that even though some of the details are different the behaviors driving these moves are not new. I would also add that if you do some reading on the GME story you will see that the starting point for this involved some very good analysis and sleuthing. The name was not chosen at random. Will this change how we do everything? That seems unlikely but don't sleep on this even if you don't plan to trade along with it. I do not plan to trade along with it. If you happen to have a name that the r/wallstreetbeets ends up going after, have the good sense to realize you were lucky and sell at least some of that holding.

I am test driving a new fund that could make it into client portfolios at some point in the future called RG Aurum+ which has symbol GLDPX. The fund just started in December but some data services show it going back much further like maybe some other fund used to use this symbol but either way it is brand new. It first made my radar because it was described as a Bitcoin fund. When I looked at it though it looks almost nothing like Bitcoin (BITCOMP). What it actually does is target 85% gold and 15% not Bitcoin but Grayscale Bitcoin Trust (GBTC) which I own. It could be thought of as a gold fund with a Bitcoin overlay. The GBTC exposure could help it outperform gold, at least that has been the case so far but with only 15% Bitcoin, it is not a Bitcoin proxy.

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