Be very wary of the standard Gamestop narrative

 We'll be coming back to the hopelessly wrong-headed short-seller take (when your arguments come from Elon Musk...), but you should also take a hard look at the "little guys beat the big boys at their own game" headlines. This spike certainly did screw over a multibillion dollar hedge fund, but that doesn't mean that the small retail investors are on the whole going to come out ahead on this. If this is a once and future $5 stock, it's safe to say that a lot of RobinHood traders will not (did not?) time the peak.

 Putting aside the complicated options discussion for a later time, we have reason to  believe that for every individual investor who bought at $20 and sold at $200, there are a few who jumped in after the stock had gone up 1,000%. 2021 is not likely to go well for the latter group.

 

Battlespeech pic.twitter.com/kiMV70O9qR

— Looposhi (@22loops) January 19, 2021

 

As always, for a smart take on a muddled story I recommend Hiltzik.