The Week In Review: One Thing We Love, One Thing We Hate, One Thing We’d Live For

Sooo the markets have been movingggg mad. Yes, LITERALLY. You’ve been printing cash, literally too. We see you! Keep working! Keep pitching your tent on the right soil. We’re rooting for ya!

Quick one: Curious about how ETFs, ESG (Environmental, Social and Corporate Governance) investing and a new Sheriff in the White House intersect? Chibby O. on this one. Read up on his ingenious in the analyst corner of the Trove blog.

Zoom Zoom Zoom! Off We GO!!!

One Thing We Love

+301% in one day firefire We saw a tweet: “I woke up a millionaire” …God, When?!

Wednesday’s trading was an unusually-active trading day as shares of movie theater operator AMC Entertainment (AMC) were up 301% at $19.90. The rise is said to be a “frenzy” from a Reddit group called WallStreetBets (WSB). WSB apparently “ganged” up to buy the stock in response to a number of short calls, most notably from Andrew Left of Citron Research, who predicted that the stock would drop to $20. GameStop’s stock had previously rallied about 135%, floated by a move from the same group. On Monday, GameStop’s stock surged another 130%, then it was halted, and it closed the day up at 18%. On Wednesday at noon, it was up another 110% to $118. The stock is up 630% since Friday. 

Due to the high spike in traffic, most trading apps experienced some down time during Wednesday’s trading hours, and some had to suspend the sale of AMC and GME. The situation also caught the attention of the White House and some moves are underway to restructure or halt this twilight train.

How many of you were on that train?

One Thing We Hate

Do you remember the Jack Ma and Chinese government’s saga? Looks like the government always holds the better side of the bargain! 

Jack Ma’s company Ant Group Co. has said it is planning to turn itself into a financial holding company, overseen by China’s central bank. This is in response to pressure to fall fully in-line with financial regulations. Before the company’s blockbuster initial public offering (IPO) was called off in November, Ant had been on track to go public at a valuation above $300 billion, well above the market capitalizations of the world’s biggest banks. Ant’s payments business and other financial services have been subject to some regulations, but the group as a whole has long been spared from the stringent capital requirements and rules that banks, insurers, and other traditional financial institutions have been subjected to. The Chinese regulators recently told Ant to become a financial holding company in its entirety, subjecting it to more stringent capital requirements. Ant, in response, has submitted to authorities an outline of a restructuring plan.

Perhaps, don’t fight the system?

One Thing We’d Live For

Near Zero Interest Rates

The Federal Reserve of the United States has set “short-term” interest rates near zero. This is due to the softening of the economy over the past few weeks and an attempt to watch the effects of a Covid-19 vaccine rollout on business activity and employment rates. The Fed also launched a bond-purchase program of $120 billion per month, and said it would keep stimulative measures in place until its goals of lower unemployment rates and 2% inflation are achieved. 

Just wishing CBN will go in the same direction and knock down the interest rate from the current 17%. If CBN is reading this… 

There you have it!

Leaving you with today’s action words: CHIN UP!

Until Next Time,

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