Stock market craziness - when and how does this end?

Noah Rosenblatt

Talking Manhattan on UrbanDigs.com
Staff member
Watching GME and AMC and the little guys take down the big guys, is pure craziness. Once upon a time these markets were efficient, with stable price signals. Now, distortions everywhere.

I dont see how the equity markets do not puke out excesses at some point this year

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John Walkup

Talking Manhattan on UrbanDigs.com
Who knows.... perhaps these spikes will help de-centralize and distribute derivative risk, lowering overall market risk in the process. Akin to many little skirmishes versus a big war...
 

David Goldsmith

All Powerful Moderator
Staff member

John Walkup

Talking Manhattan on UrbanDigs.com
Back in the day I ran a long/short portfolio - nothing terribly fancy but still hedged up the wazoo. For every short I had, the algo would work to balance it out against a long position. As the shorts were covered, the longs were sold. I can imagine that the massive short covering that is powering some of these moves can lead to massive sell offs in seemingly random stocks at the same time. The seas are roiling!
 
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