5 ms·
One of the key why stocks of bankrupt companies like Hertz go up 500% in matter of days is so called “river of money”. Globally, there is massive amount of cash
by sytelus 6y ago
One of the key why stocks of bankrupt companies like Hertz go up 500% in matter of days is so called “river of money”. Globally, there is massive amount of cash sloshing around through people’s retirement accounts which ends up at places like Robinhood, Blackrock etc. When you sign up for 401K, you are putting money in this river where these gamblers take a dip. The bottom line is that no one is playing with their own money and so gambling, short term profit jacking etc are full on. The principles of value investing, looking at future long term returns is all down the drain. Even the many big tech boards are almost exclusively run by investor suits looking to squeeze out money in short term and walk away. If the situation continues, I think stock market isn’t going to be viable channel for public investment in long run.