Quite an interesting analysis indeed. Thanks for the insights. But unless I do not understand the numbers it seems odd to equate a decrease in profits to a loss. That has been a puzzle for a while. Certainly some things do not generate as much profit as they had in the past, or as some optimist predicted, but a lower profit does not equate to a loss as I see it. Certainly it could be a failure to meet predictions, but not an actual loss.
Indeed! It sort of seems that they did not understand that "to get rich quick you must sell quick," which is fundamental to stock market speculation.
My thinking is that it probably also has to do with the short attention span syndrome that has afflicted a large part of the population. Success in day-trading, or in any sort of fast-moving area takes a fair amount of focus as well as fast responses.
That is my perception of the reason that many hung on and took a loss. Quite a bit like driving fast in heavy traffic in bad weather.
Thanks for all of the news, VL, and I am glad you got the vaccine, I hope that it keeps you well. But keep on masking because no vaccine is 100%, and I do enjoy reading your posts.
Unfortunately it is not obvious that "But this is a market phenomenon, not an economic phenomenon. If we learned anything from 2020, the stock market is not the economy." To quote the author. And so while certainly some action is needed on the part of the fed I have no illusion that the correct action will be picked, or that it will be understood that the stock market really IS NOT the economy.
It seems that a fair portion of the problem can be laid at the feet of the federal reserve bank and it's policies and actions. Certainly the very low interest rate on both savings and debt is a fair part of the reason that efficiency and cost-effectiveness have not been held as important. It does appear that all of the efforts on the part of the fed have been intended to protect the stock market and that 1% crowd, without much regard for anyone else. It certainly seems that this needs to change, and unfortunately Superman is AWOL at this time.
Unfortunately, I do not have a clear vision of the solution, or even the specific set of changes required.
What is clear is that greed has a high price, and that the payment is coming due, and that it will not be a happy time for quite a while. My hope is that the changes can be made without a lot of violence and destruction. That mob event at the capital was not the way to do it.
Quite interesting, on the verge of exciting, even. An on-line educational organization that appears to be good enough to partner with the notables. Of course a lot of details are not mentioned here, but then this is about the profitability of the business, not an ad for the products.
Certainly good education is valuable and thus quite marketable, and certainly the mechanics of doing it are far from simple. And clearly 2U has discovered a process that works well. Many others appear to have not done so well.
So it does seem that this will be a growing profitable organization.
One item not mentioned in this post is that every one of those shares bought as the price was rising was sold by somebody who already owned it. THOSE were the folks who made the big profit. The bad news is that to turn a profit on stock that has increased in value one must sell it, and to sell stock there must be buyers. And who wants to buy shares for $350 that are really only worth $3.00, like they were 3 weeks earlier, if nothing has happened to increase their value. And share VALUE is not the same as the selling price, usually.
So while the adventure may have put a dent in the profits of one hedge fund, it was by no means really a battle won.
Beating Wall Street effectively will require a fundamental change in what the federal reserve bank actually does, and who it is done to. But that is less likely than Vladimer Putin being elected as Pope.
Thanks for the insight, although I really wish that it was wrong. Quite wrong. BUT wishing does not make it so. The questions are "when" and "What Else?" answers not forthcoming. I do hope that i all waits until warmer weather.
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Thanks for sharing a very useful insight!
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Quite an interesting analysis indeed. Thanks for the insights. But unless I do not understand the numbers it seems odd to equate a decrease in profits to a loss. That has been a puzzle for a while. Certainly some things do not generate as much profit as they had in the past, or as some optimist predicted, but a lower profit does not equate to a loss as I see it. Certainly it could be a failure to meet predictions, but not an actual loss.
The Gamers’ Uprising Against Wall Street Has Deep Populist Roots
Indeed! It sort of seems that they did not understand that "to get rich quick you must sell quick," which is fundamental to stock market speculation.
My thinking is that it probably also has to do with the short attention span syndrome that has afflicted a large part of the population. Success in day-trading, or in any sort of fast-moving area takes a fair amount of focus as well as fast responses.
That is my perception of the reason that many hung on and took a loss. Quite a bit like driving fast in heavy traffic in bad weather.
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Thanks for all of the news, VL, and I am glad you got the vaccine, I hope that it keeps you well. But keep on masking because no vaccine is 100%, and I do enjoy reading your posts.
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Unfortunately it is not obvious that "But this is a market phenomenon, not an economic phenomenon. If we learned anything from 2020, the stock market is not the economy." To quote the author. And so while certainly some action is needed on the part of the fed I have no illusion that the correct action will be picked, or that it will be understood that the stock market really IS NOT the economy.
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It seems the the graph shows a lack of confidence indeed. Unfortunately the solution is not so obvious.
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It seems that a fair portion of the problem can be laid at the feet of the federal reserve bank and it's policies and actions. Certainly the very low interest rate on both savings and debt is a fair part of the reason that efficiency and cost-effectiveness have not been held as important. It does appear that all of the efforts on the part of the fed have been intended to protect the stock market and that 1% crowd, without much regard for anyone else. It certainly seems that this needs to change, and unfortunately Superman is AWOL at this time.
Unfortunately, I do not have a clear vision of the solution, or even the specific set of changes required.
What is clear is that greed has a high price, and that the payment is coming due, and that it will not be a happy time for quite a while. My hope is that the changes can be made without a lot of violence and destruction. That mob event at the capital was not the way to do it.
2U - The Underpriced Ed-Tech Company Targeting A Multi-Trillion Dollar Market
Quite interesting, on the verge of exciting, even. An on-line educational organization that appears to be good enough to partner with the notables. Of course a lot of details are not mentioned here, but then this is about the profitability of the business, not an ad for the products.
Certainly good education is valuable and thus quite marketable, and certainly the mechanics of doing it are far from simple. And clearly 2U has discovered a process that works well. Many others appear to have not done so well.
So it does seem that this will be a growing profitable organization.
Thanks for the post!
The Gamers’ Uprising Against Wall Street Has Deep Populist Roots
One item not mentioned in this post is that every one of those shares bought as the price was rising was sold by somebody who already owned it. THOSE were the folks who made the big profit. The bad news is that to turn a profit on stock that has increased in value one must sell it, and to sell stock there must be buyers. And who wants to buy shares for $350 that are really only worth $3.00, like they were 3 weeks earlier, if nothing has happened to increase their value. And share VALUE is not the same as the selling price, usually.
So while the adventure may have put a dent in the profits of one hedge fund, it was by no means really a battle won.
Beating Wall Street effectively will require a fundamental change in what the federal reserve bank actually does, and who it is done to. But that is less likely than Vladimer Putin being elected as Pope.
Is This The Biggest Financial Bubble Ever? Hell Yes It Is
Thanks for the insight, although I really wish that it was wrong. Quite wrong. BUT wishing does not make it so. The questions are "when" and "What Else?" answers not forthcoming. I do hope that i all waits until warmer weather.