Financial Treason & Crime

The GameStop Stock Saga: A Postmortem

Milton Ezrati, 07 February 2021

So much has been written about GameStop stock it seems pointless to offer yet another take on its saga now. It also seems pointless to guess what motivated the Reddit crowd or why the short sellers hung on for as long as they did. All that is water over the dam, as the saying goes.

At this point, the adventure carries two important and age-old investment lessons: One is that taking part in a buying frenzy leads to at least as many losers as winners, usually more, for there are many in the Reddit crowd who enthusiastically bought at highs and have suffered significant losses. The second is that shorting is a very risky business. Both lessons should now be clear, even when seen through the tears of those who lost. What deserves attention here is that, with a few notable exceptions, the media made a hash of covering these events. Continue reading “Article: The GameStop Stock Saga: A Postmortem”