There are segments of the stock market going absolutely batshit crazy.
1) SPACs...Special purpose acquisition corps. Basically a closed end fund that is looking to buy actual business. Check out CLII and BBIG. Crazy moves
2) Anything with big short interest. Check out BB and GME. Blackberry and Gamestop. Apparently Robinhood retail investors talk up these runs on the shorts in chat rooms and then goose them really hard. GME was at $5 in Sep and touched $159 today...now down at 72.
3) Anything related to batteries or electric cars.
Replies to: “There are segments of the stock market going absolutely batshit crazy.”
My kids do Robinhood. I mentioned BB at dinner. My high schooler brought up Gamestop.
My kids are following those market swings. I think that is a good sign...that they are at least following the online game of "reality" that is the stock market.
Check out Google cleaning up and covering for Robinhood. I'd consider encouraging your
kids to find a different modality with which to trade. Unbelievable.
Link: https://www.foxbusiness.com/technology/google-robinhood-reviews
Yeah, Google is evil. Amazing. Regarding Robinhood, I will talk to the kids about alternatives.
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Schwab is very solid - recommend a switch ASAFP.
$0 commissions and they have an excellent trading platform, good research, a bank, an Amex card that pays 1.5% cash back into your account automatically, etc, etc.
Robinhood may go under. Any time you hear the phrase "ample liqiuidity" it's time to get nervous. They must have massive, massive problems getting the margins correct on all the options positions. When a broker goes under you will probably get your money back...but it will take a long time and it is a pain in the ass. Happened to me when Corzine ran MF Global into the ground.
I anticipated many of these things. I didn't anticipate how quickly they would be implemented.
This is what a cultural revolution feels like.
The whole thing is crazy right now.
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