Last Wednesday, InvestmentNews hosted its annual market outlook webcast, titled “Money, Markets and Mystery.” The timing couldn’t have been better, because that day’s trading action brought money, markets and mystery to the fore, with GameStop Corp. shares embodying the “mystery.”
The heavy shorting of GME stock underlies the coverage — and shorting remains a mystery to so many, including new investors and long-term market observers. Couple that with some of this activity reportedly coming from new online arenas for investors, Twitter and Reddit, where gamification of investing was brought to the fore.
The massive money moves led to breathless coverage of these names on financial and mass media, and gave me flashbacks to 1999-2000, as market pundits waved their arms over these small names. It was energizing — but it misses the point.
The long-term reality of the market was captured on the webcast by Commonwealth Financial vice president Peter Essele, who said there was a reason for the sell-off that was lost in the barrage of information about GameStop; the real factor behind the sell-off, he said, was the Fed’s dovish tone in its statement after the Open Market Committee meeting.
Despite drama and gamification, the mystery of the market is no real secret: It always comes back to long-term fundamentals, and not passing drama around an off-the-run name.
$1.7M invested from an inheritance. Then the phone went dead.
The pre-IPO platform sold $430M in units while allegedly rigging prices behind the scenes.
A Nationwide survey finds 47% of GLP-1 users have never discussed the drugs’ financial impact with an advisor, even as many dip into savings.
The hundreds of millions of dollars from a sale of Inspired Healthcare properties does not mean an immediate windfall for investors.
Its SEC filings said one thing - a congressional probe said another.
Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
