Carson Block of @muddywatersre writing in the FT lays the blame of stonk gyrations like GameStop (sub $20 on 12 Jan, up 18-fold in 10 trading days) squarely on low rates and passive investing.
This is Hogwash, Blatherskite, Buncombe, and Taradiddle.https://www.ft.com/content/dbfc69df-7dbc-4338-a475-1432ffdc4056 …
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Replying to @bauhiniacapital @muddywatersre
macrocephalopod Retweeted macrocephalopod
Hadn’t seen the article or your thread but I ended writing about basically the same thing here — though with less eloquence and more insults :)https://twitter.com/macrocephalopod/status/1359988450720628736 …
macrocephalopod added,
macrocephalopod @macrocephalopod
A wrong belief that many otherwise smart people have is that index funds are “momentum investors” i.e. they mechanically buy more as prices rise and sell when prices fall (example from Bill Ackman’s 2015 investor letter below and I saw this *twice* in unrelated threads today). pic.twitter.com/rntUJjob2V
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3:15 PM - 11 Feb 2021
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