And the Street ran red

American economist Allison Schrager had some interesting things to say about GameStop, Robinhood and the testo-drenched mob over at WallStreetBets on Reddit. People confuse investing with gambling. So maybe they shouldn’t be allowed to own stocks.

“Investing in individual stocks is risky, and most people would be better off owning an index fund. If they did, they’d make more money on average and face less risk at the same time. Day-trading options are even riskier.”

How crazy is it to ban the ownership/trading of individual equities? Just so people don’t blow themselves up?

Well, look what happened to all those young Hoodie turks who believed their digital overlords and jumped into GameStop at $300 a pop. Or four hundred. Or even two hundred. The vast majority were fleeced. Losses are estimated to be in the hundreds of millions.

The GameStop lesson: it’s not a game. So stop.

Poor kiddos. They wanted to get rich fast without working for it (isn’t that called ‘gambling’?) and also bought into the Trumpesque fiction that it was a moral act to punish Wall Street. Of course, the Street won. It always does. And that’s why day traders are usually squished.

Look at the stats. Plain as the nose on your face.

A study in Brazil two years ago found one in three day traders were making bank after a single day of flipping stocks. By day 300, that had dropped to 3% with the other 97% poorer than when they started. The conclusion: the longer people do this, the stupider they get and the bigger their losses.

Another study in Asia lasted 12 years and had a similar result – only 5% of day traders were in the black and two-thirds were consistently in the red. Ditto in the US, where the stats show those who invest, stay invested, get comatose or forget they ever invested, do better than those who trade and try to time markets. In fact, a famous Fidelity analysis showed the best-performing accounts over a decade belonged to dead people. They tend to buy and hold.

Here’s more: over two decades the US stock market advanced close to 600% (a return of over 9% a year), but day traders who missed the 30 best days (out of 5,000 trading sessions) had – incredibly – a negative return. Invariably those good days came after crappy ones, so DIY investors who went to cash to avoid market declines (because they’re smarter than everybody else) usually missed the recoveries. Lesson: stay invested. Be diversified. Stop making financial decisions with your pants.

Adds economist Schrager:

“Owning individual stocks is inefficient for most people. We’d have more money and less risk if we just owned funds, and if we want to encourage more people to invest in the market, that’s what we should aim for. I’m all for democratizing the markets, but for me, that means wider ownership of efficient stock portfolios.”

Of course, Reddit and the Hoodies haven’t democratized finance. They’ve gamified it. Despite the short-term swings in their target stocks (GameStop staunched the bloodletting for a while on Friday), most of them will get played.

Here’s another lesson: during the 2008-10 credit crisis disaster the stock market shed 55% of its value at one point, and took seven years to fully recover. During that time a balanced & diversified portfolio (no individual stocks) lost 20%, recovered in a year, then advanced 17%. So investors who completely ignored the financial markets and played with their dogs instead ended up with an average 5% yearly return. Not shabby.

Anybody can ignore history, data, human experience and the stats, thinking they’re smarter than the herd, and day trade. Anybody can go to r/wallstreetbets, join the rabble and try to profit through market manipulation. We’re all free to get hot stock tips from a BIL, a news feed, stock blog or Twitter. Now with a cutesy trading app, we’re just a swipe and a click away from buying something whose value changes by the minute.

And look at this pathetic blog. Cowboys can’t wait to come on here and tell you how awesome they are because of the stock picks they’ve made. They dangle wins, and get amnesia when it comes to losses. It’s all about competition, superiority and (I’ll say it…) toxic masculinity. As the Hoodies have been posting lately, “we’re gonna get rich or die trying.”

Exactly.

129 comments ↓

#1 TurnerNation on 02.05.21 at 1:26 pm

People and kooks keep saying this ain’t over. That will be years more of the “New System” rollout globally, until 2030.
What is mainstream Bloomberg News predicting? Same thing. 7 more years at least:

https://i.redd.it/adj0i7zqtmf61.jpg
….

This is how the game is played in Kanada. Small business, kaput. Ordered shut in QC, ON. The billionaires? Free money. Elite Friends of The Party took our money. The spoils of WW3:

https://downup.io/bell-received-122m-in-wage-subsidies-bringing-big-3-total-to-nearly-quarter-billion/
Bell received $122.8 million in wage subsidy money from the Canada Revenue Agency, the company confirmed to the downUP, bringing the total amount of federal wage subsidies given to Rogers, Telus and Bell to nearly a quarter of a billion dollars

“The Globe and Mail reports in its Friday edition that Air Canada said it needs government aid before it can give refunds to customers whose flights were cancelled in the pandemic”

…….

Q1 ‘mutations’. This will be dragged on well into 2022-23.

Coronavirus variants could alter Alberta phased reopening plan, Kenney saya (cbc.ca)

……………
This will help kill small business. Who wants to go eat out in a restaurant, wearing medical gear? No fun.
And at reduced capacity who may stay in business? It’s no wonder in 2019 we were sold all year on the concept of Ghost Kitchens. Science says…predict the future. Ok. Ummm…June:

https://www.blogto.com/city/2021/02/toronto-officially-extending-its-covid-19-bylaws-until-june/

……………
For Doomer Dolce.

https://www.npr.org/sections/goatsandsoda/2021/02/01/962821038/the-mystery-of-indias-plummeting-covid-19-cases
But four months later, India’s coronavirus numbers have plummeted. Late last month, on Jan. 26, the country’s Health Ministry confirmed a record low of about 9,100 new daily cases — in a country of nearly 1.4 billion people. It was India’s lowest daily tally in eight months. On Monday, India confirmed about 11,000 cases.

“It’s not that India is testing less or things are going underreported,” says Jishnu Das, a health economist at Georgetown University. “It’s been rising, rising — and now suddenly, it’s vanished! I mean, hospital ICU utilization has gone down. Every indicator says the numbers are down.”

Scientists say it’s a mystery. They’re probing why India’s coronavirus numbers have declined so dramatically — and so suddenly, in September and October, months before any vaccinations began.

#2 Piano_Man87 on 02.05.21 at 1:41 pm

I almost dropped maybe a few K into game stop. Just for fun.

But it really hit home that I would never do that at a casino. That made me think twice. Even being a small amount, and for fun, when you translate it like that it seems insane. So I would spend $50 on gamestop for fun. And expect to lose it. Just like I would at a casino, or at a poker night.

#3 some guy on 02.05.21 at 1:42 pm

I also think the eagerness to blow ones life savings on risky investments is rooted in having a pessimistic view of the world.

Some redditors are only able to see the collapsing of ecosystems, the rich getting richer, stifling upward mobility, and the recent de-stabilization of the west. In their minds the future is so bleak that their best chance of getting ahead is gambling their life savings away. Gambling is giving them hope when have none.

This negative view of the world is obviously self-fulfilling and not very productive. But I do think there is more at play here than just toxic masculinity.

#4 Ponzius Pilatus on 02.05.21 at 1:50 pm

The hedge fund Senvest Capital made 700 million on the Reddit debacle.

#5 Couldn't count the times ... on 02.05.21 at 1:50 pm

that my fellow employees would tell everyone in the lunchroom how much they made on their stocks. Never once heard of a loss but one thing I do know … they are still working while I am not of my own accord. Mugs game for most …

#6 Captain Uppa on 02.05.21 at 2:03 pm

While I took immense pleasure in seeing Hedge Funds lose their proverbial minds over GME, I do not stock pick.

I cringe every time I hear people in my office talk about their stock picks and how they “know” before anyone else does.

It’s nauseating.

#7 Sail Away on 02.05.21 at 2:08 pm

Well.

My first stock, recommended by an Edward Jones advisor in 1999, was Worldcom. It went bankrupt. My second stock to go bankrupt, recommended by the company RRSP advisor in 2008 was Manitok Energy.

Then I spent a year learning and began self-directed investing in 2009. Two more stocks of my choosing have since gone bankrupt, or essentially so: Stuart Olson and Fred’s Pharmacy.

Three have exceeded 3,000%. Two others have exceeded 1,000%.

The bulk of our family’s portfolio is divided across 6 ETFs and Berkshire Hathaway.

Our family portfolio as a whole has returned around 11% CAGR. My engineering company has returned 50% CAGR, including div… but I can’t pound another mil in and expect immediate return- the company needs to be coaxed, encouraged, fertilized and wheedled- it will only grow as conditions allow.

My take? The longer you live, and the more you learn, the better you should get at the game. Lots of people make the unconscious choice to just get older.

#8 Adam Smith on 02.05.21 at 2:09 pm

Some things are addicting and will destroy your peace of mind and often your life. That’s why I avoid the slots, day trading, Twitter and crystal meth.

#9 bdwy on 02.05.21 at 2:11 pm

https://www.worldometers.info/coronavirus/country/india/

—————-
remarkable. this is 1/5 of the planet and it’s being wiped out. what are thay doing different?

#10 jess on 02.05.21 at 2:24 pm

..”American taxpayer dollars to continue to finance an organization that, in its present state, is so clearly not serving America’s interests,” he wrote. A few of Trump’s points were immediately debunked. For example, he claimed that the medical journal The Lancet had published on the new coronavirus in December. The next day, the journal issued a statement calling the claim factually incorrect because their first reports on COVID-19 were published on 24 January. The journal also refuted other allegations in the letter, concluding that the claims are “damaging to efforts to strengthen international collaboration to control this pandemic.”
==================
weakening the CDC
the branding guy… was spreading false /misleading information with regard to vaccines and treatments!
..”called the President’s Response to Outbreaks ” trump speaking in the singular
…”overseen by a presidential appointee from the US state department.
==================================

https://www.nature.com/articles/d41586-020-01586-0
“A rift between the WHO and researchers at US agencies could also weaken long-standing collaborations. Scientists from the US Centers for Disease Control and Prevention and National Institutes of Health often rotate through the WHO’s headquarters in Geneva, Switzerland. Around 180 epidemiologists, health-policy specialists and other staff members at the WHO are from the United States, and dozens of other Americans work at the organization as visiting scholars and interns. Most of their jobs aren’t directly tied to US funding, but they could be affected as the relationship between the United States and the WHO is strained, says Lee. There could also be impacts on about 80 official WHO collaborating centres in the United States.”

Speaking at an online news briefing from Geneva, Adhanom Ghebreyesus said almost 130 countries with a combined population of 2.5 billion people were yet to administer a single dose of vaccine, and repeated his plea for rich nations to share doses with poorer countries once they have vaccinated health workers and older people.

“But we also need a massive scale-up in production,” the WHO director general said. “Last week, Sanofi announced it would make its manufacturing infrastructure available to support production of the Pfizer/BioNTech vaccine. We call on other companies to follow this example.”

Virgil Capital Founder Admits $100 Million Crypto Fund Fraud
By Joel Rosenblatt
and Chris Dolmetsch
February 4, 2021, 6:24 p.m. EST Updated on February 5, 2021, 10:32 a.m. EST

#11 Alex on 02.05.21 at 2:24 pm

We mustn’t let adults make their own investing decisions for they may lose their own money. Poor kiddos.

#12 KEN RAFUSE on 02.05.21 at 2:30 pm

“get amnesia when it comes to losses”

Never better said, be it real estate, stocks or vacations in Vegas. When someone tells you their yearly salary, substract 5k, when they tell you what they paid for that new car, add 5k.

#13 SunShowers on 02.05.21 at 2:31 pm

“Of course, the Street won.”

How do you figure?
From your article, you said the retail investors losses were “estimated to be in the hundreds of millions.”

Hedge funds shorting Gamestop were estimated to have lost over $19 billion.

Weird that you think that the side which lost over 100x more money than the other won in this particular exchange.

Some people probably thought they could make a quick buck doing this, but I’m friends with a great many others who bought stock just to stick it to the hedge fund guys. They did not care about the few hundred bucks they threw into the $GME bonfire. Not in the slightest. They new it was gone the moment they bought those shares, and they didn’t care. They were willing to slit their wrists if it meant they could slit the throats of hedge funds by doing so.

It’s also worth noting how the stock only went back down because no fewer than SEVEN different independent brokerages simultaneously had “problems” at the exact same time. Weird how those problems only applied to the buying side of trades, and only to the shorted stocks and not others.

#14 Rakiki on 02.05.21 at 2:34 pm

It took a while, but I finally let go of most of my individual Canadian dividend stocks/dividend ETFs and replaced them with XIC. Hopefully my kids will take over that holding (or its successor) in 40-50 years and hold it for their lifetimes as well. In a somewhat efficient market, I figure it will come out on top over a decades-long run.

#15 Dwilly on 02.05.21 at 2:36 pm

“Poor kiddos. They wanted to get rich fast without working for it (isn’t that called ‘gambling’?) and also bought into the Trumpesque fiction that it was a moral act to punish Wall Street. Of course, the Street won. It always does”

I completely agree with the majority of this post. I personally “saw the light” >10yrs ago with the help of this blog and others and no longer own individual equities, nor have any expectation of “quick bucks”.

That being said, one thing I see happening a LOT today is the wholesale discrediting of groups or views without considering that THERE MAY BE SOME IMPORTANT NUANCE OF TRUTH WITHIN. You can see this everywhere, Left vs. Right, Covid “lockdowners” vs. “deniers”, whatever.

The ironic part is that, I do think buried within all the other stupid stuff is a modicum of a valid point on behalf of the Robin Hooders. Take some of these short selling hedge funds themselves – what “good” are they doing society? They are not inventing, they are not creating, they are not doing much “good” other than trying to make themselves money by betting on things. Isn’t this exactly what we are decrying the Robin Hooders for?

I dunno, we ought not to throw out the baby with the bath water. The right should not dismiss ALL points made by the left simply because they come from the left. And visa versa. And we should probably acknowledge that some of the fuel for these Robin Hooders comes from some legitimate complaints, which, unaddressed, will fester and grow.

#16 westcdn on 02.05.21 at 2:48 pm

My sister and I had completely different views on life. True, mother gave her her a seeming harder time than me. She had her reasons. My sister’s daughter seems to really like me, perhaps she sees my father. I offered his wood carvings to her, she took them all except the ones I had hanging on the walls from a few unknow artists.

My favorite is the lone faller. My father and I had more in common than history will ever show.

#17 Comments! on 02.05.21 at 2:50 pm

Poor kiddos. They wanted to get rich fast without working for it

———————

As much as we adore you, Ryan and Doug, sounds like almost every other derivative and hedge fund low life on Wall Street and Bay Street. Taking trillions of tax payer money and no interest for savers scraping by during a deep global recession isn’t winning we “long term” investors any popularity contests either.

#18 Sail Away on 02.05.21 at 2:50 pm

#13 SunShowers on 02.05.21 at 2:31 pm

From your article, you said the retail investors losses were “estimated to be in the hundreds of millions.”

Hedge funds shorting Gamestop were estimated to have lost over $19 billion.

Weird that you think that the side which lost over 100x more money than the other won in this particular exchange.

———–

The thing is… well, 2 things: first, that $19M isn’t going to be the final number, and second, do you actually think money the hedge funds use is their own? As in Melvin Capital owners are going bankrupt?

This was basically a redistribution of money between big firms, with individual investors contributing the operating capital.

#19 DON on 02.05.21 at 2:53 pm

On a warm Summer’s evening
On a train bound for nowhere
I met up with a gambler
We were both too tired to sleep
So we took turns a-staring
Out the window at the darkness
‘Til boredom overtook us
And he began to speak

He said, “Son, I’ve made a life
Out of reading people’s faces
Knowing what the cards were
By the way they held their eyes
So if you don’t mind my saying
I can see you’re out of Aces
For a taste of your whisky
I’ll give you some advice”

So I handed him my bottle
And he drank down my last swallow
Then he bummed a cigarette
And asked me for a light
And the night got deathly quiet
And his face lost all expression
Said, “If you’re gonna play the game, boy
You gotta learn to play it right”

You got to know when to hold ’em
Know when to fold ’em
Know when to walk away
And know when to run
You never count your money
When you’re sitting at the table
There’ll be time enough for counting
When the dealing’s done

“Every gambler knows
That the secret to surviving
Is knowing what to throw away
Knowing what to keep
‘Cause every hand’s a winner
And every hand’s a loser
And the best that you can hope for
Is to die in your sleep”

#20 Sail Away on 02.05.21 at 2:53 pm

#14 Rakiki on 02.05.21 at 2:34 pm

It took a while, but I finally let go of most of my individual Canadian dividend stocks/dividend ETFs and replaced them with XIC. Hopefully my kids will take over that holding (or its successor) in 40-50 years and hold it for their lifetimes as well. In a somewhat efficient market, I figure it will come out on top over a decades-long run.

————-

Yeah, XIC might double in 50 years. The maple beaver is done. Stick a fork in it.

#21 Prince Polo on 02.05.21 at 2:54 pm

Ja Rule said to “hold the line” – why should any responsible investor care what he says?

*language warning*
https://www.youtube.com/watch?v=Mo-ddYhXAZc

Invest 15-20% of your gross each year for 25 years and let time do the heavy lifting. I’m currently into year 16 of 25. Unfortunately, nobody wants to hear about the surest way to wealth.

To prove that I was listening to what Garth said (thanks for writing about it), I will brag about my epic failure at stock-picking – my “valiant” Valeant trade on its way to the cellar. Wiped out around 80% of that ACB. Kudos to self!

#22 Linda on 02.05.21 at 2:54 pm

Folks gambling on the stock market is nothing new. The difference between the past & now is simply the speed at which one can place one’s bet.

One can decry the losses, talk about protecting people from themselves. How then can one expect those people to learn from their mistakes? We can hardly complain about how immature younger people are when we prevent them from experiencing life lessons that will produce the maturity we say we want them to demonstrate.

#23 Dolce Vita on 02.05.21 at 2:54 pm

#1 Turner Nation

Good for India.

But they only count cases that get tested. They have had a Draconian Lockdown. You want to hope for them it’s true.

Mumbai and Pune, sero-prevalence studies more than 50% exposed. Take their populations, multiply by 0.5 and compare that number to India’s total cumulative cases. Here I will save you the time:

= 10.7M

Total cases in India (Worldometer):

= 10.8M

Looks like just those 2 cities got infected in India.

https://www.ft.com/content/07988f31-d511-4af4-8b78-03ecaf2d4df7

Stop using the Americans as a source. They still haven’t figured out there are mutants out there besides those they have in their comic book superhero movies.

-And, try some verification Math next time else you become Will Rogers Poster Child for:

“All I know is what I read in the papers and that’s an alibi for my…”

————————-

And, I’m a Doomer?

Rich from:

Signore Quisque Amat Conspiratio

#24 Lee on 02.05.21 at 3:06 pm

Shouldn’t the topic today have been Canada’s horrible job loss numbers? When is the government going to get these people back to work?

#25 Amok on 02.05.21 at 3:08 pm

@ #1 Turner Nation

I’ve heard of the coming of a ‘New System’ my entire life, preached to me by my Jehovah’s Witness grandparents.

That system never came… and they have since passed.

#26 CJohnC on 02.05.21 at 3:13 pm

#13 Sunshowers. “It’s also worth noting how the stock only went back down because no fewer than SEVEN different independent brokerages simultaneously had “problems” at the exact same time. Weird how those problems only applied to the buying side of trades, and only to the shorted stocks and not others.
———————
There are no independent brokerages on this issue:

https://wallstreetonparade.com/2021/02/citadel-is-paying-for-order-flow-from-nine-online-brokerage-firms-not-just-robinhood/

Also of interest is that GameStop orders were not settled properly:

https://wallstreetonparade.com/2021/02/sec-621000-shares-in-gamestop-trades-had-not-properly-settled-by-january-14/

#27 Steerage on 02.05.21 at 3:14 pm

For the first time since the dawn of time.. the book cost of my preferred’s is no longer underwater….. !!!

Now that is patience.. try that hoodies!

Now if I had just bought TSLA instead

#28 truefacts on 02.05.21 at 3:16 pm

“How crazy is it to ban the ownership/trading of individual equities?” – Garth
________________________________

Answer: VERY crazy. Only ADULTS can buy/sell stocks – FREEDOM to do as you wish (as long as you’re not hurting anyone else).

Drinking alcohol, eating junk food, watching TV, gambling…all bad.
Should we ban all these too?

#29 Dolce Vita on 02.05.21 at 3:17 pm

I agree with your take on the Hoodie stock manipulation. Nothing more than a Pyramiding scheme. First in that generate all the schmooze make the cash, since few of them at the top of the Pyramid (FIFO), etc

Boomers had their Pyramiding schemes in the mid-80s, subsequent generations have had theirs now. Hope they learned their lesson.

————————-

About your no stock, ETF best admonitions, stats, history et. al., I agree…90%.

I like some excitement the odd time. Thought about last year instead of those boring, every safe, reliable, much higher returns than deposit rate ETFs.

Last March sat down and thought about “excitement” whilst locked down in Italia and came to some “no brainer” single stock conclusions:

1. Pandemic. They will need vaccines to get out of it. Buy a reputable VAX stock. ✓

2. Americans smug thinking they would not get Covid ’cause Italia, well, it’s people are reckless. Buy a reputable Funeral stock operating in America. ✓

3. The rest of them, not just Italia, will get locked down, be bored and quaff gobs of streaming entertainment whilst eating junk food of a vegetable origin. Buy Streaming and Fertilizer (SK) stocks. ✓

…double to triple digit returns in a meagre investment portfolio vs. this Blog’s Richie Rich Survey respondents.

——————-

Having said that, most of my investments are in ETFs, like 90%…but I just needed some excitement with quasi-predictable returns.

Human Nature Garth…within reason you can bank on it, have some excitement in the meantime and not get nailed in the process with single stock bets.

Still, ETFs the way to go. All 3 of mine are up at least 25% – even the Chinese one (though they are probably rigging it, rig away I say).

CONCLUSION: Like you have said in the past, a lot like the Ronco Guy:

“Set it and forget it”.

A strategy that has paid off for me thanks to you Garth.

#30 Ponzius Pilatus on 02.05.21 at 3:20 pm

#7
Sailo,
And I thought you became filthy rich by trading kitschy whale paintings.

#31 Doug t on 02.05.21 at 3:20 pm

I just like the chaos they are creating – anything that garners this kind of media attention, and exposure of Wall Streets evils, is just fantastic – keep it up Hoodies well done indeed

#32 Penny Henny on 02.05.21 at 3:30 pm

Stop making financial decisions with your pants.-GT

//////////////////

But what if it keeps going uppa, Uppa, UPPA

#33 Brian Ripley on 02.05.21 at 3:30 pm

GameStop… a classic example of chasing yield at a market top

My chart series of Canadian Real Long Rates, Real 10yr Rate, Rate Spread and Yield Curve after 11.8 years of the “zero bound” is up: http://www.chpc.biz/

As can been seen on my Yield Curve chart, we are 11 months away from the prior 8 months of inversion on the 10yr less 2yr plot and the 10yr yield (a proxy for mortgage rates) is clearly rising against a depreciating 2yr yield. The result? The TSX Real Estate Index momentum Y/Y plot is carving out the same pattern that we saw in 2008 when street level housing tipped over into plunge-ville.

It’s one thing to bet $1000 on a retail stock with an out of fashion business model and another to bet $1,000,000 on a depreciating slab-on-grade pile of wood as rents drop double digits.

#34 T-Rev on 02.05.21 at 3:32 pm

Viva-la Toxic Masculinity. My pronouns are a**/hole.

Only a commie would support taking the power away from people to determine their own financial futures by limiting what can or cannot be owned by individual investors. Now, because I’m not an intersectional marxist, I’m not going to mis-read your words- you simply asked the question, so here’s my answer: Yeah, most retail investors are idiots for owning individual stocks, or trying to time the market. But we’re all adults in a free country, and it’s a sickeningly paternalistic idea to suggest that people need to have limits placed on their investment decisions to protect them from themselves. Sounds like something Jagmeet or Bernie would come up with. Maybe after they limit us to ETFs, then they can limit us to Green ETFs, or Country Biased ETFs, or Socially Responsible ETFs, also for our own individual or collective good.

Gamestop was an excellent lesson, and wonderfully well covered in the media. Might encourage a whole generation of folks to pick up A Random Walk Down Wall Street, buy Burton Malkiel. Or, you could just increase the power of the nanny state and keep us safe from our own bad decisions. Gag.

#35 SoggyShorts on 02.05.21 at 3:33 pm

#13 SunShowers on 02.05.21 at 2:31 pm
I’m friends with a great many others who bought stock just to stick it to the hedge fund guys. They did not care about the few hundred bucks they threw into the $GME bonfire.
*****************
Wow, your friends are so well off that they can burn a few hundred bucks on purpose?
I thought that the only people who are that rich use hedge funds themselves.
Unless your friends aren’t actually that rich, in which case your friends are idiots.

#36 John Charles Scaling on 02.05.21 at 3:35 pm

Dear Garth,
I LOVE your blog,all life is a gamble not just the stock or real estate market. ETF’s are okay but not much fun, buy HACK, IYH,and AMJ and HPI. Then just make investing more relatable why not AW.UN and Costco, COS
Very hard to do without without these companies and the services they provide

#37 S.Bby on 02.05.21 at 3:49 pm

Index funds are carried by a top few stocks and the rest in the fund are comatose garbage. Just buy the top stocks themselves and ignore the losers.

Nortel used to be the top stock. – Garth

#38 joblo on 02.05.21 at 3:55 pm

So much FUN!
https://financialpost.com/news/economy/when-will-life-return-to-normal-in-7-4-years-at-todays-vaccine-rates

https://financialpost.com/news/economy/canadian-press-newsalert-statistics-canada-says-economy-lost-213000-jobs-in-january

https://nationalpost.com/opinion/kelly-mcparland-not-only-have-the-liberals-failed-us-on-obtaining-vaccines-they-wont-even-be-honest-about-it

Okay enough for 1 post:

Hey Atlantic, Que & GTA, please reelect Liberals in the Spring.
The entertainment must continue….

#39 SoggyShorts on 02.05.21 at 4:00 pm

#37 S.Bby on 02.05.21 at 3:49 pm

Index funds are carried by a top few stocks and the rest in the fund are comatose garbage. Just buy the top stocks themselves and ignore the losers.

*******************
OMG of course! Just buy the stocks that go up!
Hell, why stop there? Just buy the stock that goes up the MOST!

It’s so simple, that’s why every hedge fund full of professional investors crushed the index returns in the Buffett bet, right?

What? They lost the bet? How many?
Every single one? Oh my… did they forget to hire S.Bby?

#40 Inequity on 02.05.21 at 4:04 pm

This is how lessons are learned. Natural consequences. Saving people from themselves only makes things worse in the long run.

#41 Chris Serran on 02.05.21 at 4:05 pm

Day trading is completely different from buying and holding single stocks for the long term. Bought my first equity in about 1995 and have gradually sold all the funds and invested all stocks. I buy mostly good solid dividend paying companies, with a few growthy names now and again. Bought a lot in 2009, and a lot more in Feb/March last year. It all has to do with staying in the market. Just as easy to sell an ETF as a stock. Plus I would rather be in control of what I own, when I buy and sell etc. Equating day trading and owning single stocks is like saying all real estate is overpriced. I believe your saying is that real estate markets are all local. Similarly, you can’t paint an entire strategy (owning stocks) with one brush.

#42 MF on 02.05.21 at 4:07 pm

#180 DON on 02.05.21 at 11:04 am

Yo brother,

Doing well here. Lots of work keeping me busy.

Taking the break was nice. I should have stayed off lol. As has been said many times, if you want to be happy, stay off social media. The only problem is it’s so addicting, and, well, here I am.

Hope all is well!

MF

#43 Stone on 02.05.21 at 4:15 pm

And look at this pathetic blog. Cowboys can’t wait to come on here and tell you how awesome they are because of the stock picks they’ve made. They dangle wins, and get amnesia when it comes to losses.

———

Boast about individual stocks? How gauche. The real winners have balanced and diversified portfolios. Last Friday, my balanced and diversified portfolio had dropped down to 1.81% For the year. In one week, it drove right back up and now sit at 5.34% YTD. What did I do to achieve this? Nothing. What did I do a week prior? Nothing. Do I deserve these gains? Frankly, …

Rub tummy!

#44 Sail Away on 02.05.21 at 4:19 pm

#30 Ponzius Pilatus on 02.05.21 at 3:20 pm

Sailo,
And I thought you became filthy rich by trading kitschy whale paintings.

————

Today’s discussion is about the markets. But… if we want to get into Ryan’s collectibles bailiwick… then yes, art has been good to us. Mostly the kitschy stuff from Ted Harrison, Ray Troll, Rie Munoz. We’re big fans of EJ Hughes but don’t have any yet. Real estate has also been fine.

#45 The West on 02.05.21 at 4:19 pm

Yes indeed, the most corrupt of the establishment saved themselves by cheating. We all knew it was going to happen. This was a small skirmish, another one, between the general population trying to “live the dream” and the establishment reinforcing the neofeudalism they expect us to conform to.

The pressure continues to increase. I sleep just fine at night though, Uncle Joe is here to rescue us.

#46 Dolce Vita on 02.05.21 at 4:25 pm

RE:

My meagre, threadbare investment portfolio, 90% ETFs + 10% Human Nature “excitement” single stock picks.

Further to my #3 (lockdown junk food boredom = streaming + fertilizer stocks)…I DID NOT see this coming last Mar in lockdown Italia:

Gov Canada shove $300 BILLION down the throats of Cdns so they would stay at home locked down…which besides the obvious #3 above, with all that money Cdns would get, I would have figured out they would not venture out to shop in the midst of other Typhoid Mary’s and hence would have bought:

AMZN

last year. Who knew Justin would end up just like his Dad when it comes to deficits (downside of being a trustin Liberal)?

Oh well, 3/4 Human Nature ✓ “excitement” predictions not bad.

Still, at US $2000 a pop back then (Mar 2020) a little beyond my CDN $ meagre “excitement” resources (about $3350 today – darn, double darn).

Why ETFs a good idea. Big single stock plays for the very rich…plenty of downside possible, need a big wallet for that…bigger than mine is.

#47 DON on 02.05.21 at 4:37 pm

#42 MF on 02.05.21 at 4:07 pm
#180 DON on 02.05.21 at 11:04 am

Yo brother,

Doing well here. Lots of work keeping me busy.

Taking the break was nice. I should have stayed off lol. As has been said many times, if you want to be happy, stay off social media. The only problem is it’s so addicting, and, well, here I am.

Hope all is well!

MF

******************

I hear yah.

#48 Bezengy on 02.05.21 at 4:37 pm

Robinhood or RobbingHoodies, which is it?, probably the latter. I have a theory that most people need to be kicked square in the gonads at least three times before the message sinks in. Folks will eventually get it, they’ll just need to endure a little more pain.

#49 gfd on 02.05.21 at 4:41 pm

In another news, the clash between China and the U.S. continues on Friday as a U.S. Navy ship sailed near the Chinese-controlled Paracel Islands in the heavily disrupted South China Sea, only to get a stern rebuke from Beijing. The USS John S. McCain, an Arleigh Burke-class destroyer, entered the waters near Paracel islands Friday without China’s permission on a “freedom of navigation operation,” the first known operation in the heavily disputed area under the new Biden administration. The heavily disputed waterway is one of the flashpoints in the U.S.-China relationship, including a trade war, technology war, U.S. sanctions, Hong Kong and Taiwan.

#50 Elon Fanboy on 02.05.21 at 4:45 pm

“Poor kiddos. They wanted to get rich fast without working for it”

As opposed to Hedge funds who add absolutely nothing to society apart from untold misery for all the people caught up when companies are forced into bankruptcy after being targeted for shorting, all to generate insane profits for people who already have more money than they know what to do with.

Hedgies don’t just short, nor do they hold the largest short positions. Stop with the Reddit narrative. Old. Wrong. – Garth

#51 greyhound on 02.05.21 at 4:46 pm

Whole lot of valuable wisdom in a single post today

#52 Michael in-north-york on 02.05.21 at 5:00 pm

No, don’t ban the ownership. Fools will find other ways to part with their money. While the average investors will see the change as an attack on their interests, and react in ways that lead to unintended consequences.

Some will refuse to invest at all. Some will stay away from the mainstream financial instruments, and go for gold, cryptos, RE, you name it. Some will invest in their friend’s or their BIL’s small business.

If the rule change is limited to one country or a group of countries, then quite a few investors will try to get access to foreign markets. Where they can trade local stocks, as well as more obscure / riskier instruments.

And if you are wealthy and feel like playing a trading genius, then you probably can establish your own mutual fund. Hire a fund manager who has the formal credentials but is actually willing to do your bidding, and you are set to go. So much for the equality.

Worth noting, the last ~20 years were good for stocks. Some bad years, but not a single 5-year period when the major indices didn’t grow. But, this is is not the law of nature; longer decline periods did happen in the past and may happen again.

Now imagine the depth of resentment of the millions of small investors, who were forced to invest in mutual funds if they want to invest at all, when they observe their fund is still in the red after say 10 years. While some individual stocks did manage to advance. Sure, most of those small investors wouldn’t be able to pick the right stocks, but try proving it to them after the fact.

#53 DON on 02.05.21 at 5:01 pm

Headlines from bloomberg…

Stocks Climb on Stimulus Hope After Weak Jobs Data: Markets Wrap

Steep Drop in Canadian Jobs Fails to Derail Recovery

Optimism Overtakes Everything in Markets Even as Recovery Stalls

All we have left in the tank is emotion and HOPE?

#54 TrivialCrisis on 02.05.21 at 5:08 pm

The group is called r/wallstreetBETS. Not r/wallstreetinvestors.

Of course they are terrible at giving investing advice. If you spend enough time sifting through the wreckage you will notice that the denizens of that community celebrate losses as much as the celebrate wins. What kind of sick investor community would do that?

I feel bad for the millions of new readers who showed up because of GME and got confused about the nature of the activity in that community. But the original 1m or so members prior to this insanity were definitely not under any delusions about whether this was betting or investing.

#55 crossbordershopper on 02.05.21 at 5:12 pm

well the crux of the issue is that people who are in any business dont want people to do things themselves. They will discourage you from doing things your not an expert in. No one would recommend there own dental or medical but money i think are different.
i understand, i have met many people over the last thirty years who have lost money trading or investing themselves. but i have also met successfull individual investors.
In the end, i think people should learn and invest themselves as much as they can, and get specialized advise on complicated stuff.

#56 DON on 02.05.21 at 5:12 pm

#49 gfd on 02.05.21 at 4:41 pm
In another news, the clash between China and the U.S. continues on Friday as a U.S. Navy ship sailed near the Chinese-controlled Paracel Islands in the heavily disrupted South China Sea, only to get a stern rebuke from Beijing. The USS John S. McCain, an Arleigh Burke-class destroyer, entered the waters near Paracel islands Friday without China’s permission on a “freedom of navigation operation,” the first known operation in the heavily disputed area under the new Biden administration. The heavily disputed waterway is one of the flashpoints in the U.S.-China relationship, including a trade war, technology war, U.S. sanctions, Hong Kong and Taiwan.

*****************

I have been watching this one as well…a clear line in the ocean. Will it spark a short confrontation sending oil prices higher like a shock? Australia and China are spatting back and forth….same with Japan. Increase in the cost of shipping, inflation rearing its head in many countries. Conditions favourable to a black swan event?

The news talk is now about rates having to rise sooner than expected. It is almost as if we are being lied to or at least misled with opinated hope.

War…what is it good for?

#57 Stone on 02.05.21 at 5:15 pm

#9 bdwy on 02.05.21 at 2:11 pm
https://www.worldometers.info/coronavirus/country/india/

—————-
remarkable. this is 1/5 of the planet and it’s being wiped out. what are thay doing different?

———

Oh my! Could it possibly just be…propaganda?

Wouldn’t be the first nor the last time numbers are fiddled with to push a certain narrative.

#58 Stoph on 02.05.21 at 5:16 pm

#36 John Charles Scaling on 02.05.21 at 3:35 pm
Dear Garth,
I LOVE your blog,all life is a gamble not just the stock or real estate market. ETF’s are okay but not much fun, buy HACK, IYH,and AMJ and HPI. Then just make investing more relatable why not AW.UN and Costco, COS
Very hard to do without without these companies and the services they provide
—————————————————————–

The point of investing is to make money and that’s the fun part too. The ‘fun’ of owning relatable companies is a trap that ends pretty quickly if the company you invested in goes bankrupt. Better to just buy boring ETFs and watch in excitement as your portfolio grows.

#59 S.Bby on 02.05.21 at 5:16 pm

Kroger offers $100 to each employee who gets the COVID-19 vaccine

https://www.marketwatch.com/story/kroger-offers-100-to-each-employee-who-gets-the-covid-19-vaccine-2021-02-05?mod=mw_latestnews

A good carrot for some people …

#60 Ponzius Pilatus on 02.05.21 at 5:19 pm

#44 Sail Away on 02.05.21 at 4:19 pm
#30 Ponzius Pilatus on 02.05.21 at 3:20 pm

Sailo,
And I thought you became filthy rich by trading kitschy whale paintings.

————

Today’s discussion is about the markets. But… if we want to get into Ryan’s collectibles bailiwick… then yes, art has been good to us. Mostly the kitschy stuff from Ted Harrison, Ray Troll, Rie Munoz. We’re big fans of EJ Hughes but don’t have any yet. Real estate has also been fine.
—————–
Ray Troll?
Must be your brother.
For me, it’s either the real stuff (Klimt, Monet, Rembrandt etc.) or nothing.
The small stuff is too easy to forge.

#61 Sail Away on 02.05.21 at 5:32 pm

#39 SoggyShorts on 02.05.21 at 4:00 pm

Re: Buffett’s bet against the hedgie

————-

The well-known part of this story is that, yes, the S&P500 Vanguard index fund VFIAX soundly beat the hedge fund.

Lesser known is that Buffett’s own company, Berkshire Hathaway, beat the index fund, with BRK-A finishing 11% higher than VFIAX.

So… hedge fund bad, index good, Berkshire best

#62 IMALWAYSRIGHT on 02.05.21 at 5:32 pm

The pandemic has provided a unique opportunity to digitize our world. Try the survey.

https://news.ontario.ca/en/release/60211/ontario-seeks-public-input-to-help-shape-digital-id-program

#63 Ponzius Pilatus on 02.05.21 at 5:34 pm

Still remember the last days of BreX.
Productivity in the office was near zero.
Everyone was in the lunch room, talking what they will do with the windfall.
Many talked about quiting.
Then a guy jumped out of a helicopter.
The next day everybody was at their desks, nose to the grind stone.
Moral of the story:
I think you get it.

#64 Sail Away on 02.05.21 at 5:36 pm

#60 Ponzius Pilatus on 02.05.21 at 5:19 pm

Re: art

For me, it’s either the real stuff (Klimt, Monet, Rembrandt etc.) or nothing.

———–

Cool. Hanging nothing on your walls definitely keeps things simple.

#65 PetertheSeparatistfromCalgary on 02.05.21 at 5:38 pm

The world is going toward internet distribution of all digital content. This is why Block Buster is gone. This trend does not bode well for Game Stop.

I suspect future consoles may not even support optical media like DVDS and Blue ray disks.

#66 jess on 02.05.21 at 5:39 pm

FACT SHEET–Reddit, Robinhood, GameStop & Rigged Markets:The Key Issues for Investigation February 1, 20211

https://bettermarkets.com/sites/default/files/documents/Better_Markets_Reddit_Robinhood_Gamestop_RiggedMarkets_02-01-2021.pdf

===============
The criminal network deceived 50 financial institutions through shell companiesThe criminal organisation, mainly formed of Greek nationals, set up shell companies in the United States and opened bank accounts for these companies. To gain the trust of the financial institutions, members of the criminal network made transfers to the US-based accounts from different locations in the EU. Based on this trust, the American-based banks issued debit and credit cards for these accounts. Retailers in on the scam, most of whom were in Spain, used the payment cards to finance the available credited amounts on the cards. To launder the stolen funds, they transferred them to different bank accounts, owned by members of the criminal network located in several EU countries. More than 50 American financial institutions became victims of these fraudulent activities losing over €12 million.

https://www.europol.europa.eu/newsroom/news/105-arrested-for-stealing-over-%E2%82%AC12-million-us-based-banks

#67 Gramps on 02.05.21 at 5:39 pm

“ bought into the Trumpesque fiction that it was a moral act to punish Wall Street. “

Where did that come from?
Here is my 2 cents…
Here is what Trump will be remembered by;

His 3 Supreme Court picks.

Free speech and liberty by allowing businesses and churches to express their faith and also allowing them to abstain from acting against their faith.

Halting the transgender agenda (at least temporarily)

Defunding abortion and declaring it not a constitutional right.
Was he religious? Not at all. But he defended them.
Now the US has a T2 clone.

As you know, there is a lot more to life than $.

Like whacking trans people and letting COVID rip through synagogues? – Garth

#68 crowdedelevatorfartz on 02.05.21 at 5:41 pm

@#192 Woosh
“In Quebec, the answer apparently is yes. They seem to do a good job about it too.”
+++

Ahhh yes.
The “famed” $7/day Quebec daycare.
IF you can find a spot.

One wonder when the Canadian taxpayers from other provinces subsidizing Quebec’s largess will finally wake up and demand the same.

Billions of tax dollars to pay for this……

#69 Victor Maitland on 02.05.21 at 5:44 pm

The problem here is what, exactly? Let the kids blow up. Most speculators/investors (the same thing really, whether anyone wants to admit it or not) learn their lesson by blowing up at least once, when they’re young and small and unlikely to cause damage to the wider economy. Unlike hedge fund managers and investment bankers, who blow up later in life, and cause widespread damage before getting bailed out by the Fed.

#70 R on 02.05.21 at 5:44 pm

Owning individual stocks is less dangerous than buying a bidded up piece of real estate with 5% down, at historical low interest rates in a boony community . And yet it is done with less concern , nah encouraged, by govts. Everyone has the right/ freedom to lose their money their own way.

#71 S.Bby on 02.05.21 at 5:48 pm

#53 DON

The stock markets are completely detached from reality at this point.

#72 Don Guillermo on 02.05.21 at 5:57 pm

#59 S.Bby on 02.05.21 at 5:16 pm
Kroger offers $100 to each employee who gets the COVID-19 vaccine

https://www.marketwatch.com/story/kroger-offers-100-to-each-employee-who-gets-the-covid-19-vaccine-2021-02-05?mod=mw_latestnews

A good carrot for some people …
*****************************************
Mexico launched an online vaccination registry earlier this week starting with residents 60 y/o and up. The first few days the site was bogged down but today it was accepting registries. You receive a registry number and then they’ll notify you by phone with time and place. Quite efficient.

#73 NOSTRADAMUS on 02.05.21 at 6:02 pm

Mount Everest, the highest mountain in the world. Much like the stock market. When you are at base camp it really doesn’t look that far to the top. Only a couple of miles at most. With blue skies, no big deal to the summit. Besides you have guides to show you the route and Sherpas to do the heavy lifting. What could possibly go wrong? Stay the course. As you trek higher ignore the bodies that never came back down. Been there done that.

#74 whiterice197 on 02.05.21 at 6:08 pm

Garth I have gained much benefit over the years reading your blog, and have believed in the principles of a B & D portfolio. However, my thinking has recently changed on how to allocation my investment dollars, and WSB has helped to strengthen these beliefs. The main change during all of the government stimulus is to add cryptocurrency, mostly bitcoin, to my portfolio, around 10%. I’ve also added gold/silver for another 10%. The remaining 80% is B & D. I feel that the continuous money printing by our government and the US will not end well, and won’t be without some severe economic consequences. From your previous posts on bitcoin in Nov 2017 you claimed that its not a currency. That is absolutely correct. But I believe, and many others, including many institutions that are allocating money towards crypto, view it as store of value, digital gold, with a finite supply. Since one year ago, btc has gained 285%. Even if bought at the high of 2017, one would have a 94% gain since that point. No other investment comes close (besides Ethereum), and the very fact that no government can shut it down is what makes it so appealing. But when it comes to the WSB crowd, the brokerages can just change the rules and say that investors can’t buy GME. If anything, more regulation needs to come on enforcing rules so that hedge funds cannot naked short 140% of outstanding shares.

#75 Joe on 02.05.21 at 6:17 pm

It’s called Education Education Education
The younger gang obviously do not know how to invest in stocks, diversified etc. If this group of people continue along with little to know guidance and lose the money they are investing/gambling with they will eventually stay out of the markets forever. Its in the investment communities best interest to make sure an effort is put forth to Educate.

Maybe before anyone can open a trading account they have to take a very short educational course on investing so they are introduced to the fundamentals

#76 Peter Kook on 02.05.21 at 6:21 pm

Too much hate against WFH.
I would question why?
The only reasonable explanation would be for some individuals over-invested into downtown core..

For normal people it would be better not to go to the downtown, except for restaurants, fireworks, stadium.

My impression for 3 years working in Vancouver downtown:

-heavily polluted air by car fumes
-no parking
-strong industrial noise, all the time
-drug dealers to really hiding the business activity
-perverts and mentally ill on every corner
-panhandlers,panhandlers,panhandlers everywhere.

Downtowns are so 19-20th century

#77 GRG on 02.05.21 at 6:25 pm

“…People confuse investing with gambling. So maybe they shouldn’t be allowed to own stocks…

…How crazy is it to ban the ownership/trading of individual equities? Just so people don’t blow themselves up?…”

Wrong solution to an age old problem. Put a fee on each trade instead.

“The second most dangerous thing about money is that it leaves most of the people who have a lot of it with the unshakable belief that they are intelligent and well informed. The most dangerous thing about it is that it leaves most of the people who do not have a lot of money with the very same belief.”

#78 Stone on 02.05.21 at 6:32 pm

#68 crowdedelevatorfartz on 02.05.21 at 5:41 pm
@#192 Woosh
“In Quebec, the answer apparently is yes. They seem to do a good job about it too.”
+++

Ahhh yes.
The “famed” $7/day Quebec daycare.
IF you can find a spot.

One wonder when the Canadian taxpayers from other provinces subsidizing Quebec’s largess will finally wake up and demand the same.

Billions of tax dollars to pay for this……

———

That’s never going to happen. Taxpayers from other provinces are just plain dumb. You think people in Kanaduh are woke?

Crowdie: Wake up!
Nelson from the Simpsons: Ha! Ha!

#79 Nonplused on 02.05.21 at 6:39 pm

“Investing in individual stocks is risky, and most people would be better off owning an index fund. If they did, they’d make more money on average and face less risk at the same time. Day-trading options are even riskier.”

While I agree with this advice, it should remain advice only. I see no reason to prevent WallStreetBets and the Robinhood crowd from having the right and the access to trade individual shares if they so choose. After all they are allowed to buy lottery tickets and play VLT’s. I don’t think it is the role of government to treat adults as children and decide how they lose all their money.

Besides, the internet can be a pretty wild west atmosphere once you leave the safety of GreaterFool.

#80 Don Guillermo on 02.05.21 at 6:43 pm

#78 Stone on 02.05.21 at 6:32 pm
#68 crowdedelevatorfartz on 02.05.21 at 5:41 pm
@#192 Woosh
“In Quebec, the answer apparently is yes. They seem to do a good job about it too.”
+++

Ahhh yes.
The “famed” $7/day Quebec daycare.
IF you can find a spot.

One wonder when the Canadian taxpayers from other provinces subsidizing Quebec’s largess will finally wake up and demand the same.

Billions of tax dollars to pay for this……

———

That’s never going to happen. Taxpayers from other provinces are just plain dumb. You think people in Kanaduh are woke?

Crowdie: Wake up!
Nelson from the Simpsons: Ha! Ha!
************************************
Can’t win a federal election without Quebec votes. We should have let them walk in ’95

#81 Nonplused on 02.05.21 at 6:54 pm

#13 SunShowers on 02.05.21 at 2:31 pm

“It’s also worth noting how the stock only went back down because no fewer than SEVEN different independent brokerages simultaneously had “problems” at the exact same time. Weird how those problems only applied to the buying side of trades, and only to the shorted stocks and not others.”

It has been covered here before and it is not “weird”. The combination of lack of capital to post and failure to delivers made sourcing the stock to fill buy orders near impossible. Also the extreme volatility drove margin requirements to 100%.

But it should be noted that folks who were long GameStop before all this started are still ahead 100%. How many of them have already sold at higher prices? We don’t know. But if Robinhood was buying it makes sense that someone was selling.

Faron did a good job a few days ago explaining how the short sales work and how the short position can exceed float, but regardless for every short out there someone has to be long. So whoever the fool who bought at $460 was, someone sold. I doubt it was a short seller because they were running for cover and peeing in their Depends. But we will probably never know who these people were or how many of them there are. They seem to be strangely absent from Reddit.

I now is I was a long suffering GME holder at around $20 and saw it shoot up to $300 in a matter of days I wouldn’t be able to keep my finger off the sell button. It was a gift that seldom comes along.

#82 Faron on 02.05.21 at 6:55 pm

#71 S.Bby on 02.05.21 at 5:48 pm

#53 DON

The stock markets are completely detached from reality at this point

May be true, but reality may catch up and reattach itself to the market. There’s a LOT of money on the sidelines that can slosh in to equities. You’ll want to be in before then.

#83 Keith on 02.05.21 at 6:58 pm

I have a paid for home, and about 80% of my money is in a balanced and diversified portfolio with an excellent advisor. I run some of my own money, with an approach drawn from Peter Lynch’s excellent book, one up on Wall Street.

I pile into stocks that go up, and I have had a couple of big hits in the past.

Canopy Growth.
Tandem Diabetes.

My two biggest current positions are Great Bear Resources, and Red Light Holland. If you are disciplined enough to admit you are wrong, and drop your losers, and disciplined enough to let your good choices run long enough to pay off, you can get excellent returns. It helps to be semi retired and secure, with time and resources. Investing keep your brain engaged and connected to the world in many ways and is a very worthwhile pursuit.

#84 trading is a skill on 02.05.21 at 7:17 pm

Trading is a skill that can be learned. There’s no magic to it. Even day trading is a skill. Problem is people don’t want to put in the work and effort to learn properly how to trade.

You have to work hard at finding an edge and asymmetric risk reward opportunities. You need proper risk control and position sizing. You need entry and exit rules. etc etc. its’ work.

You seem to think one needs to trade constantly, and that’s just not correct. Beginners trade constantly. Professionals have plans. It’s a business.

Having said that. Yes. The majority of people should have a balanced, diversified portfolio, and go to sleep.

#85 Lead Paint on 02.05.21 at 7:19 pm

#9 bdwy on 02.05.21 at 2:11 pm
https://www.worldometers.info/coronavirus/country/india/

—————-
remarkable. this is 1/5 of the planet and it’s being wiped out. what are they doing different?

My completely uneducated and unqualified guess is that they’ve gained herd immunity without knowing it – that current tests aren’t sufficient at picking up immunity.

India is such a dense and packed place with an entirely different notion of hygiene. I’ve been many times and love it there but it’s a virus’s paradise and in 10 months it’s already gone through the population.

They have a young population so many who had it wouldn’t have even known they had it.

#86 KLNR on 02.05.21 at 7:25 pm

@#67 Gramps on 02.05.21 at 5:39 pm
“ bought into the Trumpesque fiction that it was a moral act to punish Wall Street. “

Where did that come from?
Here is my 2 cents…
Here is what Trump will be remembered by;

His 3 Supreme Court picks.

Free speech and liberty by allowing businesses and churches to express their faith and also allowing them to abstain from acting against their faith.

Halting the transgender agenda (at least temporarily)

Defunding abortion and declaring it not a constitutional right.
Was he religious? Not at all. But he defended them.
Now the US has a T2 clone.

As you know, there is a lot more to life than $.

Like whacking trans people and letting COVID rip through synagogues? – Garth

You’re giving gramps around the world a bad name.
oh, and trump will be remembered for is asinine tweets and conspiracy theories, thats it.

#87 Warren Buffet on 02.05.21 at 7:31 pm

The stock market is a device for transferring money from the impatient to the patient.

#88 Another Deckchair on 02.05.21 at 7:33 pm

Next Lib. campaign slogan:

“Weed for all! Vaccines for None!”

Kinda truthful ring to it. ;-)

#89 Lead Paint on 02.05.21 at 7:36 pm

#34 T-Rev on 02.05.21 at 3:32 pm

Agreed. I lost all my savings (about $2k) on Nortel in my twenties, and vowed when I had enough money I’d use a real financial advisor, and not pick “hot” stocks. Balance and diversified now and couldn’t be happier – thanks Garth!

Hopefully young people are learning this lesson with GME and will retire better for it.

#90 crowdedelevatorfartz on 02.05.21 at 7:50 pm

@#86 KLNR
“Here is my 2 cents…
Here is what Trump will be remembered by”

++++

Trump will be remembered for his incompetency as a Head of State.
He will also be remembered for the looming Court cases for sexual assault, tax evasion, fraud, etc.

My personal wish?
He will be sued into bankruptcy.
His family will follow in his footsteps, they will all backstab each other, throw each other under the bus as “daddy” has taught them.

His final days spent scurrying from “friend” to “friend” who will pay him to appear at functions, for a fee, like some tragic beast in a circus.

#91 Nonplused on 02.05.21 at 7:51 pm

#65 PetertheSeparatistfromCalgary on 02.05.21 at 5:38 pm
The world is going toward internet distribution of all digital content. This is why Block Buster is gone. This trend does not bode well for Game Stop.

I suspect future consoles may not even support optical media like DVDS and Blue ray disks.

————————————

Why would they? You can fit much more data on an SD card. It is true that many games can be purchased by streaming now but you still gotta have some place to store it like onboard memory or an SD card, which can be added to many consoles. But for games that are rendered in HD, I don’t think we are away from physical delivery just yet. But the new games I’ve seen that my son buys, it is a plug in thing that could very well have nothing in it but an SD card. I’ve got a MicroSD for my GoPro that has 64 GB. It is smaller than my pinky nail, I’m sure you’ve seen them. Compare that to a blue ray at 23 GB and 4.7 on a DVR, at a much larger physical size. You can’t fit a DVR-RW into a GoPro.

So ya, some consoles like the Nintendo Switch already do not have optical readers. They use little plastic things that resemble the games for the old Gameboys. And they cost $80. But SD cards aren’t cheap like DVD’s.

But back to the subject, I don’t think GameStop and EB Games are done just yet. For 14 year old boys (and many girls) they are like a temple, and they sell many different merchandises beyond just games. They sell the consoles, used games, take trades, and all the other paraphernalia like cases and bobble head dolls. The paraphernalia actually takes up most of the floor space.

I was in EB Games just a few days ago as for my son’s birthday present he wanted to upgrade his “Switch lite” to a full “Switch”. They gave us $150 bucks for the used lite and a brand new Switch was $400, so $250 right? But somehow it cost me $580 by the time the insurance, second set of controllers, carry case, screen protector, and a copy of “Just Dance” his mom wanted was added. If they are going broke, it isn’t on my account.

And yes, I probably could have saved me some money buying and selling it all online, but time is money. This took about 20 minutes.

(PS, Interestingly, my wife tells me that the new version of “Just Dance” includes a subscription service that lets you play all the previous versions of Just Dance for a monthly fee. But you have to have the physical version of the new one. Why is this? Why not just go direct to stream? Well, full streaming takes a lot of data, but with all the visuals and calculations already on the SD card, all they need to stream is the music and codes for the moves.)

(PPS, the reason streaming works for movies is that 4.7 GB is being streamed over 2 hours. To download a 32 GB game would take as long as upgrading from Windows 7 to Windows 10 and you still need to store the data somewhere. There is a reason Windows is still on your hard drive.)

#92 Kilt on 02.05.21 at 8:01 pm

Not disagreeing.

You can play it both ways! 90-95% of my portfolio is the boring stuff. Some dabbling in individual stocks. But even that is slowly getting replaced by ETFs. But when the opportunity presents itself I do take the other 5% and make option trades. Mostly covered calls, some leap purchases. I’ve tried day-trading it, but never seems to last. Either I lose interest, get cleaned out, or get a good winning streak that I choose to not disrupt, so I cash out. Usually if things start seeming like they are overvalued and my original rational for starting the option trades no longer holds.
I did the same while gambling. Once I was up a certain amount, wasn’t hard to walk away from the table. I enjoyed the time at the table, put my original wager in my wallet and used the winnings for a nice dinner and night out. But, I knew it for what it was. Gambling. If you can’t afford to lose the coin, stay away from the table. Stick to ETFs.

Kilt.

#93 Ottawan on 02.05.21 at 8:03 pm

Garth, lots of people city the Fidelity “dead investors” study but nobody can seem to find the original source.

It’s a very interesting study that probably never happened!

https://www.morningstar.com/articles/964493/from-the-archives-in-praise-of-the-dead-investors

#94 Robert Ash on 02.05.21 at 8:13 pm

Seems to me there is a lot of irrational exuberance. I read a comment here from the WSB crowd, a bit of a challenge to define FD… Being on the learning curve… I was thinking Fixed Deposits…. I googled it, and was directed to a site with the Reddit Blog…Google it for yourselves…it isn’t a nice Acronym, the sad part of this is the last area of income for many Seniors, in a direct form, or vis a vis a Pension fund, is to my way of thinking ridiculed. That is not a comforting thought. Hard to take the process seriously, with these types of events. The SEC and the Rating Agencies were missing in action in 08, seems, a lot of our basic institutions, need a rethink.

#95 Gramps on 02.05.21 at 8:14 pm

Re#67;
Whacking trans people and letting Covid rip through synagogues..
Christians are commanded to love their neighbours.
That’s not the same as agreeing with them. My relationship with my children reflects this. Love them no matter what they do. They know this. But they don’t expect me to encourage behaviour I don’t approve of.
A follower of Jesus doesn’t whack anyone.

Again, I don’t believe Trump is a Christian.
But he supported them.

As far as Covid goes, if you look at just the border states with Canada, to try and get roughly the same population density, we have nothing to be proud of. Biden’s hopes to vax 100 m in 100 days would not be possible without the work done before January.

And#86, sorry about the “gramps”. I know this is a financial blog, not a “worldview “ blog.
I’m done my ranting.

#96 Flop... on 02.05.21 at 8:18 pm

Here, have a post…

M46BC

“Here’s How WallStreetBets Is Exploding the Market.

WallStreetBets is a subreddit suddenly famous for driving individual investors to crowd into and out of stocks, launching several companies on a rollercoaster ride and setting record levels of market volatility. Here’s how 7 picks from Reddit’s WSB have fared over the last several days.

Gamestop saw the most action in overall price movement, rocketing up from $147.98 on January 26 to $347.51 the next day.

Naked Brand Group witnessed the greatest overall swing in percentage terms, skyrocketing an astonishing +323.08% in only three days.

AMC and Nokia were the first stocks to come back down, immediately retreating off the highs on Jan 26.
Overall, these 7 companies have share prices that are still higher than where they started the year, suggesting either genuine new demand or still have more room to fall.

We grabbed the daily closing price according to Yahoo Finance for several companies popular on Reddit’s WallStreetBets. We focused on the day where the market saw the wildest swing in prices, January 26, marking where these companies started and ended the day together with the overall percentage change in value. Since a lot of brokerages now offer trading for free, including fractional shares of companies, our approach allows for an apples-to-apples comparison of how volatile these companies have been over the last several days.

GameStop is certainly the most famous pick in WallStreetBets. The stock started the year at $17.25, before rising throughout mid-January to about $40. But things started to take off on January 27, when it closed at $347.51, a record high. That represents a YTD increase of some 1,914%. If you had put $1,000 into GameStop at the start of the year and sold at its peak, you’d net a tidy profit of over $19,000. But then platforms like Robinhood decided to suspend new orders, and as the demand dried up, the price started to plummet. GameStop closed on February 3 at $92.41, still about five-times higher in just over a month. Robinhood is now being sued for its actions, not to mention some high-profile Congressional hearings.

But GameStop is not the only company seeing its share price gyrate “to the moon” and back. AMC shot up over the course of a single trading day, going from $4.96 on January 26 to $19.90 on the following day. AMC then immediately came back down to Earth, recently closing at $8.97. Blackberry (+32.66%), Blockbuster (120%), Macy’s (11.93%), Naked (323.06%) and Nokia (+38.48%) all saw an extreme surge followed by a decrease.”

https://howmuch.net/articles/the-7-companies-most-impacted-by-reddit-investors

#97 Nonplused on 02.05.21 at 8:19 pm

“Like whacking trans people and letting COVID rip through synagogues? – Garth”

Wow, what a loaded statement in but 10 words. Impressive.

As for synagogues, I am not so sure what the Jewish beliefs are about the after life, but for Christians I do know that their status in the afterlife is of much more importance to them than anything that happens in this life. Thus you can see why they would rather follow their “lord in heaven” than any power on this earth. Whether that is all a delusion or real fact is beyond my power of knowing, but they believe what they believe. Thus, I think if they are following all the other mandates when out grocery shopping we should let them be. Some of them will die, but it is their choice. And if they are wearing masks at church I don’t know that it is worse than opening the schools.

———————————-

Now on to the trans people. I really couldn’t care less how they want to live or what persona they want to express as their own, except for one: Trans women competing in girl’s or women’s sports, especially if money, scholarships, or concerns about the safety of the smaller actual girls is involved.

Right now we have a case in Illinois I believe, where 2 born males competed as men in track and did well, but didn’t win. After a review of the stats, comparing their times to that of the women, they suddenly became trans and swept every contest they ran even setting records. Very disappointing for the born women as scholarships were involved. 100’s of thousands of dollars. Biden approves of all this. I do not. I think you can be a woman if you want, but that doesn’t mean you get to compete against the real women.

It is the end of women’s sports. Or at least the beginning of the end. Women’s sports is about to become “males tier 2”.

#98 Nichol on 02.05.21 at 8:21 pm

The stock market is a device for transferring money from the impatient to the patient.

……

lol. yeah right. its a highly manipulated market

trading is for the emotionally stable . The failure in trading is more about emotional intelligence than IQ

profesional traders clean the clock out of retail investors . Man’s mind is WIRED to anti-trade. Fear and greed; the tools of a professional trader

#99 Spiltbongwater on 02.05.21 at 8:40 pm

When you were buying a Pelaton for $2500 last March and losing weight, I bought Pelaton shares and made 10,000 and gained 5 pounds

#100 -=withwings=- on 02.05.21 at 8:48 pm

Poor kiddos. They wanted to get rich fast without working for it

That wasn’t what they were doing though…

@piano man gets it:

Even being a small amount, and for fun, when you translate it like that it seems insane. So I would spend $50 on gamestop for fun. And expect to lose it. Just like I would at a casino, or at a poker night.


The thing is… well, 2 things: first, that $19M isn’t going to be the final number, and second, do you actually think money the hedge funds use is their own? As in Melvin Capital owners are going bankrupt?

Melvin might indeed go under, we dont know what the terms of the 2.7B loan package the received from their *cough* friends was.


This was basically a redistribution of money between big firms, with individual investors contributing the operating capital.

No, there were real losses here amongst the hedge fund very wealthy clientelle. Melvins minimum buy in was 1M and 50M for managed funds. They only have a couple hundred customers…


I’m friends with a great many others who bought stock just to stick it to the hedge fund guys. They did not care about the few hundred bucks they threw into the $GME bonfire.
*****************
Wow, your friends are so well off that they can burn a few hundred bucks on purpose?

Yes, isn’t everyone? I spend more than that on my lottery pool per year …

#101 Dr V on 02.05.21 at 8:56 pm

82 Faron

“There’s a LOT of money on the sidelines that can slosh
in to equities. You’ll want to be in before then.”

I seem to recall our host using the word “epic” with “recovery”

#102 The Woosh on 02.05.21 at 9:04 pm

#68 crowdedelevatorfartz on 02.05.21 at 5:41 pm
@#192 Woosh
“In Quebec, the answer apparently is yes. They seem to do a good job about it too.”
+++

Ahhh yes.
The “famed” $7/day Quebec daycare.
IF you can find a spot.

One wonder when the Canadian taxpayers from other provinces subsidizing Quebec’s largess will finally wake up and demand the same.

Billions of tax dollars to pay for this……

—————————————————

Not as hard as you think to get a space. Even going private is cheap compared to the rest of the country. Good investment that pays dividends.

As for spending billions of tax dollars…better spent on subsidized daycare versus flushing billions of tax payers dollars on a bet for a pipeline that anyone with one tenth of a brain cell knew was going to be cancelled. Thanks Jason Kenney…someone should check that this guy doesn’t have a gambling problem. And then watching the tool justify his actions and saying how he’ll get back most of the money spent by selling the pipes. Yeah…’cause there’s lots of pipeline companies who are aching to pay top dollar to take them off Kenney’s hand…pennies on the dollar! I swear I could see the sweat running down his neck…he looked like a cornered animal. Now lets see how many ‘fools’ jump to that fool’s defense!

#103 Old Codger on 02.05.21 at 9:12 pm

Warren Buffett (Trades, Portfolio) has famously said he is against diversification. “Diversification is a protection against ignorance,” Buffett once said. “[It] makes very little sense for those who know what they’re doing.

___________________________________

Choose your old codger wisely!

#104 crowdedelevatorfartz on 02.05.21 at 9:34 pm

I think we should invest in 10 carat pink diamonds, have them grafted into our foreheads and wear a baseball hat to hide it from thieves……

https://hypebeast.com/2021/2/lil-uzi-vert-24-million-usd-pink-diamond-implanted-forehead-eliantte-co-photo

Bitcoin is for looo- zaaaahs

#105 Long-Time Lurker on 02.05.21 at 9:58 pm

Zoolander 3. Script update.

Our trio of heroes in the wheat field by the scarecrow look at each other.

Tin Man “Shawn Jerry” looks at PM Zoolander and says: “You’re finely dressed, stranger. You must be one of the elite, like us.”

Prime Minister Zoolander: “Yes, I am. I’m Prime Minister Zoolander of Canada.”

Tin Man “Shawn Jerry: and Cowardly Lion “Rich O’Donnell”: “Nice to meet you.”

They all shake hands.

Tin Man: “Where are you going to Prime Minister Zoolander?”

PM Zoolander: “I’m off to see the Wizard so I can get home to Canada.”

Tin Man: “I work for the Wizard. I can take you to him.”

Cowardly Lion: “I’m a Congressman. I’m going there too.”

PM Zoolander: “Great. Let’s go.”

Tin Man: “Now, just a minute, Prime Minister Zoolander.”

#106 KG on 02.05.21 at 10:10 pm

S.Bby on 02.05.21 at 3:49 pm
Index funds are carried by a top few stocks and the rest in the fund are comatose garbage. Just buy the top stocks themselves and ignore the losers.

Nortel used to be the top stock. – Garth
‐‐–‐
House prices were way cheaper in 2012.

#107 CL on 02.05.21 at 10:21 pm

“Cowboys can’t wait to come on here and tell you how awesome they are because of the stock picks they’ve made. They dangle wins, and get amnesia when it comes to losses. It’s all about competition, superiority and (I’ll say it…) toxic masculinity. ”

Everyone (men or women) on the internet is rich, big, strong, beautiful, happy…….perfect. This forum is no different. I have yet to read a post here where someone has no money, doesn’t make 6 figures and have yuuuge savings and a portfolio of 100% gains per month.

You never hear about losses whether gambling or the stock markets. Everyone is a genius don’t you know. It’s called human pride and is the most destructive force on earth. More powerful than all nuclear bombs put together.

#108 TurnerNation on 02.05.21 at 10:29 pm

People keep saying we are/will be ruled by global Big Tech and A.I. We’re pretty much seeing scripts roll out daily.
Anyway the cities are broke. Is this the next step, Company Towns? Everything old is new again.
Working, for our masters.

Is this why cities were virtually bankrupted in 2020 – loss of tax revenue?

https://apnews.com/article/legislature-legislation-local-governments-nevada-economy-2fa79128a7bf41073c1e9102e8a0e5f0

“CARSON CITY, Nev. (AP) — Planned legislation to establish new business areas in Nevada would allow technology companies to effectively form separate local governments.

Democratic Gov. Steve Sisolak announced a plan to launch so-called Innovation Zones in Nevada to jumpstart the state’s economy by attracting technology firms, Las Vegas Review-Journal reported Wednesday.

The zones would permit companies with large areas of land to form governments carrying the same authority as counties, including the ability to impose taxes, form school districts and courts and provide government services.”

#109 Duffy on 02.05.21 at 10:40 pm

Picking individual stocks is similar to skating on ice . . . . that eventually turns into cold water, but by then the smarter money is on the ball diamond or the golf course.

#110 Masks really do make some people more attractive on 02.05.21 at 10:59 pm

DELETED. This is not a blog about transgenders. – Garth

#111 doesn't anybody notice? on 02.06.21 at 12:22 am

Biden, if he had a hoodie gown, looks a lot like emperor Palpatine.

In but a few years you will be looking back at Trump as the good old days.

#112 Jane24 on 02.06.21 at 1:06 am

Day trading from my generation has indeed become real life macho web gaming and it will grow. There will be many more Robin Hoods in the next few years. Think about it. If half a billion bored hoodies world-wide play with $10 a day for fun it will move markets. The hoodies won’t care if they lose, it is just paid entertainment for them and no single govt controls the global stock business. It is just a disruptive innovation in a business model that hasn’t changed its methods for too many years. Adapt or be squished.

#113 fishman on 02.06.21 at 1:23 am

Whats wrong with toxic masculinity? What else could get an honest man surrounded by thieves to play in a crooked game. Gamestop was great & the lessons were cheap at any price. If you want to believe that we’re all in this together, diversity is strength, wokey,wokey, alphabet soup, or whatever smorgasbord of silly CBC flavours of the month go for it. I’m happy to report from the west coast a small cadre of young men became more toxic after getting skinned by the pros. And thats multiplied by millions. They will utilize Gamestop social media & somehow chart new paths to overthrow the elite. Or at least get a decent piece of the apple pie.Or die trying. And that too takes toxic masculinity.

#114 Sail Away on 02.06.21 at 2:45 am

#99 Spiltbongwater on 02.05.21 at 8:40 pm

When you were buying a Pelaton for $2500 last March and losing weight, I bought Pelaton shares and made 10,000 and gained 5 pounds

————

All that $ and proper spelling still eludes you

#115 willworkforpickles on 02.06.21 at 6:12 am

“Squished” definition: … hoodies chasing rolling nickels in front of steamrollers.

#116 willworkforpickles on 02.06.21 at 6:58 am

#104 crowfart
Speaking of pink diamonds, losers (& day traders)…pink diamonds are indeed as rare as they are expensive.
Years back an exploration company in Northern Ontario announced in a before the bell morning news release they had found a rare pink diamond…frenzied volume on company stock spiked from the open…by 10:30 am the share price more than doubled. By 11:00 am it had tripled…soon after that – they announced it was a mistake. No pink diamond. Again, volumes spiked and the share price tanked. By 1:30pm the stock dropped to below where it was before the bogus early morning announcement.
Big big losers that day and many believe company insiders had close outside contacts load up on the stock weeks before that announcement. A shell company ripping off unsuspecting investors made bank (large) and stunk the place out on a rare but non existent pink diamond that day.
A true pink diamond winners and losers story.

#117 willworkforpickles on 02.06.21 at 7:12 am

Hoodies definition: … newbie investors with blinders on.

#118 willworkforpickles on 02.06.21 at 7:37 am

Buy till you drop…hold till your dead.
A so long.

#119 BillyBob on 02.06.21 at 8:29 am

#107 CL on 02.05.21 at 10:21 pm

Everyone (men or women) on the internet is rich, big, strong, beautiful, happy…….perfect. This forum is no different. I have yet to read a post here where someone has no money, doesn’t make 6 figures and have yuuuge savings and a portfolio of 100% gains per month.

===========================

I know right?

But this is why the internet is so great, you can be anything you want on it, a scientist, test pilot, methane gas dispenser, piece of heavy machinery, Monet owner…anything you want!

What a wonderful time to be alive!

#120 Kiril Peev - Market Insights on 02.06.21 at 8:44 am

I’ve uploaded the latest market stats for Ottawa. Detached homes are up over 34% from 2020!

I will be posting regular market insights here as I shift through the info and find little nuggets.
https://www.kirilpeev.ca/contact/market-insights/

I hope you find some value in the information.

#121 Masks really do make some people more attractive on 02.06.21 at 8:58 am

DELETED. This is not a blog about transgenders. – Garth

#122 Do we have all the facts on 02.06.21 at 9:35 am

When there are very few places to invest with the expectation of a reasonable rate of return the decision to invest becomes based on confidence. The industry attached to the sale of a particular investment opportunity emphasizes positive factors and tends to gloss possible risks.

The simple fact that investment capital flows towards assets that are generating positive rates of return today creates ‘self fulfilling’ results that improves the confidence of investors. The ‘confidence game’ continues until the supply of new investment capital begins to shrink or the confidence of investors in other options increases.

The current rapacity of many homeowners and investors in ETF’s is not based on an assessment of intrinsic value but on confidence that current rates of return will be repeated.

A peek a little deeper into the fundamentals that establish the intrinsic value of all assets might shake the current confidence of unsophisticated investors.

Their is no substitute for sound research.

#123 the Jaguar on 02.06.21 at 9:49 am

@#113 fishman on 02.06.21 at 1:23 am
“Whats wrong with toxic masculinity?”++

Nothing wrong with it, because it can still be outwitted by feminine ingenuity every day of the week.

Seriously, I see the word masculinity (take out the word toxic, which doesn’t belong) as a synonym for the word “drive”. Some have it in spades, others are sadly lacking. Makes the world turn and promotes innovation. In cases of ‘over drive’ one must employ the usual tactics to tame the wild beast.

#124 Dharma Bum on 02.06.21 at 10:06 am

DELETED

#125 Dharma Bum on 02.06.21 at 10:08 am

THERE IS NO SUCH THING AS TOXIC MASCULINITY!

And I’ll beat the crap out of anyone who disagrees, see?

Yahhhhhhh……see?

#126 LP on 02.06.21 at 10:29 am

#60
Great; you’ve dropped some famous names in art. Feel like a big cheese now, do you? Art collecting isn’t about famous, it’s about what makes your heart soar when you look at it.
Over the years we acquired some wonderful pieces and since his death I’ve added one more gorgeous piece. Taken all together I don’t suppose their value exceeds $20k but every time I sit down with my tea I smile and thank heaven they’re around me.
The other day it suddenly occurred to me that my next move if I’m still living will be a LTC place where there won’t be room for my beloved pictures. I wept for a little while.
F73ON

#127 Bark on 02.06.21 at 1:37 pm

It’s more Bernie-esque than Trump-esque. With a handful of exceptions reddit as a whole is a mostly lefty forum. Wallstreetbets went from 2 million users to 9 million in a week. Most of these 7 million new wallstreetbets users came from the rest of reddit and were mostly Bernie fans.

It’s also not a coincidence that the WSB narratives shifted from self acknowledged degenerate gamblers dreaming about becoming rich to rage against the rich. Many users were buying GME not even to make money, but as a moral duty to harm rich people. There’s now an emphasis at WSB of this being a ‘movement’ and how they are a ‘community’. There’s an insane cult vibe there now, and it’s the total antithesis of what the sub reddit used to be.

The Trumpian reference was to people who lie. – Garth

#128 Phil on 02.06.21 at 2:04 pm

Stone#57
Oh my! Could it possibly just be…propaganda?

Wouldn’t be the first nor the last time numbers are fiddled with to push a certain narrative.
———————————————–
How many times does it have to be said:
“Lies, Damned lies…and statistics”!

#129 Prince Polo on 02.07.21 at 9:53 am

#107 CL on 02.05.21 at 10:21 pm
You never hear about losses whether gambling or the stock markets. Everyone is a genius don’t you know.

I suppose you missed comment #21, being on your high horse:

#21 Prince Polo on 02.05.21 at 2:54 pm
To prove that I was listening to what Garth said (thanks for writing about it), I will brag about my epic failure at stock-picking – my “valiant” Valeant trade on its way to the cellar. Wiped out around 80% of that ACB. Kudos to self!

Now it’s time to get off of my soapbox…Happy SuperBowl everyone!!