4 ms·

I came across a humorous video of someone getting his fish to invest in stocks https://www.youtube.com/watch?v=USKD3vPD6ZA&t=715s https://www.youtube.com/watch?

• recursive 4y ago
  Fish investing was tanked too.
  • SuoDuanDao 4y ago
    not surprising, but I'd bet SWSB would have been going strong in the interim...
  • logicalmonster 4y ago
    Was this a deliberate or accidental pun?
    • danuker 4y ago
      I would assume so. You should know that P∨¬P, logicalmonster.
      • layer8 4y ago
        Depends on whether the law of excluded middle holds in your jurisdiction.
        • davrosthedalek 4y ago
          That sounds discriminatory.
          • danuker 4y ago
            Hmm, I think the logic is quite fuzzy about that.
          • layer8 4y ago
            The law certainly isn’t inclusive.
• voytec 4y ago
  There was also a crypto-trading hamster[1] [1] https://www.npr.org/2021/09/25/1040683057/crypto-trading-hamster-goxx-warren-buffet-s-p-500 https://www.npr.org/2021/09/25/1040683057/crypto-trading-ham...
• dmurray 4y ago
  Short WSB is a difficult fund to put together. The meme stocks are often very expensive to borrow (partly because lots of other people are in the same trade). The best way to run a short ETF (on something where no futures market exists) is to also manage the long version of the fund and cap interest in the short fund to be less than or equal to the long. If it's a serious investment it's likely the long fund naturally has more interest anyway.
  • bionsystem 4y ago
    There are charts from GS or JPM (I can't remember which one) which show the performance of the most shorted stocks in the market. It's a straight line down (something like -7% annualized) and it also underperforms during crashes like 2008, 2020... Even including gamestop and AMC you only see a tiny rally in 2021 but the general line is down. Meaning it is a very effective hedge against the stock market. The explaination could simply be that mainly only smart money short stocks, and they tend to be pretty good at figuring out issues in companies that are not yet fully priced in. If I were to run a short ETF, I would add filters such as market cap, short interest and day to covers to avoid liquidity issues and squeezes, and/or play it through options structures. Like, it would have been stupid to be short GME when it had 300% of float as short interest. But it is probably fine in a lot of case with a sufficiently low day-to-covers and short interest. A more active strategy would be to monitor the Fee Rate which gives a good indication of the stock supply and is more "real time" than short interest data which often lags a few days/weeks.
    • dmurray 4y ago
      > It's a straight line down (something like -7% annualized) So if you pay 3% borrow costs you do worse than putting your money in Treasuries? 3% seems conservative for the most shorted stocks, I checked a few on [0] - TSLA 0.25%, WE 4%, AMC 143%. Uncorrelated returns are great but this is not the most compelling sales pitch for a short fund. Better to use this information to underweight those stocks in your long portfolio. [0] https://companiesmarketcap.com/tesla/cost-to-borrow/ https://companiesmarketcap.com/tesla/cost-to-borrow/
• mr3martinis 4y ago
  This video is amazing.
• make3 4y ago
  Michael Reeves is one of the best "wide public" tech youtubers