It is, perhaps, ironic that Portnoy appears to be borrowing from an adage most closely associated with Warren Buffett: Be "fearful when others are greedy, and greedy when others are fearful." "But everyone wants to ride the wave of up-markets," he said, referencing the stock market's surge immediately after bottoming in the spring of 2020. He added, however, that "right now is an awesome time to invest in the stock market." "It is human nature not to invest at a time like this," Portnoy said during an interview with MarketWatch on Wednesday afternoon. equity indexes this year, but says he maintains one belief on investing now: Suppress the urge to be fearful. That’s why with AMC and GME, when there’s a little kindling out there, the fire gets lit,” Steve Sosnick, chief strategist at Interactive Brokers told U.S News & World Report.Is it safe to invest in the stock market right now?īarstool Sports founder Dave Portnoy can't tell you precisely the moment to venture into stocks, amid the carnage taking shape in U.S. “There are plenty of customers out there who continue to look for places to buy dips using very aggressive products to do so. The buying frenzy then drove the stock price even higher.īut there’s also the possibility that retail traders pushed the stocks higher with purchases while “buying the dip.” Both stocks, along with a handful of others that included Bed Bath & Beyond and Beyond Meat, dipped in the past week, along with the market as a whole. Investors who “shorted” the stocks - that is, sold borrowed shares in hopes of buying them back at a lower price - had to buy the stock back to cover their losses. News & World Report, suggested that the rapid rise of AMC and GameStop on Thursday may not have been the work of retail investors but, instead, a direct result of institutional investors putting a “short squeeze” on the stocks. “Finding the bottom is often tried, and very rarely achieved and as a result, retail investors are feeling the fatigue of catching the falling knife.” “We are now in a bear market where rallies are more akin to a ‘dead-cat bounce’,” Anthony Denier of trading platform Webull told U.S. Meanwhile, it remains to be seen what will happen following GameStop’s earnings report next month. Overall, investors run bearish to neutral on the stock, reported, saying that it is still over-valued. However, the company did report revenue increases that exceeded forecasts. It’s worth noting that neither company had significant announcements on Thursday and, in fact, AMC stock was reeling earlier in the week after a lackluster earnings call on Monday that revealed a first-quarter loss that was “wider than expected,” reported. GameStop, meanwhile, closed at $89.57 after reaching a high of $108.05 Thursday morning. It’s important to note that this is still close to the bottom, and a far cry from its 52-week high of $72.62. See: 6 Alternative Investments To Consider for Diversification in 2022įind: 10 Walmart Brands With the Best Bargains in MayĪMC closed up 8% on Thursday, trading at $11.20 per share. Is it the return of a full-fledged meme mania, or just the result of retail investors “buying the dip” on AMC and GameStop stocks? Investors and analysts aren’t sure, but trading of the two stocks was halted “several times during the day for volatility,” on Thursday, May 12, 2022, according to Yahoo Finance.
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