The US stock market goes a long way despite the game stop and AMC crisis [김영필의 3분 월스트리트]

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Eventually, Gamestop and AMC Entertainment crashed. It amounts to -44.29% and -56.57%, respectively. Bed Bath and Beyond also did not avoid the decline (-36.4%).

Of course, considering the rising trend, it is still a lot up. However, GameStop alone showed extreme volatility as it went close to $500 and then collapsed to the $200 level again. Yesterday’s “Three Minute Wall Street” couldn’t deal with the game stop due to the news of the Federal Reserve System, but if you want to know the history and the situation up to now, “U.S. coalition ants and short sale were also pressed… Please refer to the article’I got more foam’.

What matters is the overall stock market. It is questioning whether the instability that emerged from the game stop situation spreads throughout the market. Experts say that the fundamentals have not changed. We deliver the time of Wall Street.

Stock market still attractive at low interest rates… Fed support continues

Experts believe that the game stop situation is serious, but if you look one step away, the situation surrounding the stock market has not changed. It means that the Fed’s promise of support for zero interest rates and the government’s additional stimulus measures remain the same. Rod von Lipsey of UBS Private Wells Management said, “The situation was a wake-up call the day before, and the slight pause is not surprising given that the stock market has risen significantly over the years.” “Even with good performance, some technology stocks declined, which means that investors are turning to circular stocks.” In the big picture, the stock market is worth investing in low interest rates.”

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Experts say that some speculative deals will continue. Global Market Strategist Gabriella Santos JPMorgan said, “Due to investment democratization and overflowing liquidity, such transactions will not disappear in a short period of time.” “This incident is not related to fundamentals at all.”

Lindsay Bell of Ally Invest also said, “The vaccine news will continue to come out, and news of stimulus will come.” “The Fed supports more. The fundamentals are sound.”

We’ve been giving a lot of opinions from experts to convey that there is a high probability that the GameStop incident will not burden the entire stock market. Fed Chairman Jerome Powell also emphasized employment more than before at a press conference at the Federal Open Market Committee (FOMC) in January.

When the game stop stops rising, the stock market stops falling… Game stop is a chair sitting game

On the day when stocks that had largely bought stocks and call options, including GameStop and private investors, plunged against short selling forces, the Dow and Standard & Poor’s (S&P) 500 as the leading index in the New York Stock Market rose nearly 1%. Here’s an interesting analysis. Rich Ross Evercore, an ISI technology analyst, said, “The support for the stock market is still strong. If the game stop stops rising, the stock market will stop falling.”

The previous day, when GameStop and AMC Entertainment surged 134% and 301%, respectively, this contrasts with the fact that the leading index fell more than 2%. It is read to mean that if the overall bubble worries are reduced, the stock market can continue to rise as thoughts on fundamentals return.

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In addition, the current situation surrounding events such as GameStop is in fact a’money game’. Just as individual investors’ defeat of the short-selling force is not the only purpose, the realization of profits can spill out at any time.

In this process, ants who join late or get on the last train can suffer great damage. Of course, if you have good timing, you can make a lot of money. “GameStop is a chair sitting game, and my advice is to sell before the music is over,” said David Trainer, CEO of New Constructs. In the chair sitting game, you place one less chair than the player and sit down after the music is over. The latest person doesn’t have a chair (a huge loss). I agree emotionally that there is a need to jailbreak hedge funds, but if anything goes too far, there will be a reaction.

Art Cashin “There may be outside forces that want to use the public”

Art Cashin’s UBS floor director, called Wall Street Legends, suspects that outside forces may have been involved in the GameStop event. In fact, it is individual investors who buy stocks and call options, but there may be someone else who has gained enormous gains by driving them behind.

“Gamestop is an old game with a different name,” he told US economic broadcaster CNBC. “Last 1902, a massive short squeeze occurred on the Northern Pacific Railway. This stock had soared from $45 to $1,000.” “There may be experts who want to agitate the public to attack hedge funds,” he said. “They can make them look like David (individual investors) against the massive Goliath (hedge funds).” Because they cover their faces like this, they may not be seen in the investigation by the authorities.

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Of course, there is an opinion that we should take this opportunity to look at the short selling system again. There is definitely something to fix. However, the opinion that excessive volatility is not good for the overall stock market is dominant. In particular, companies haven’t changed so much, and a surge of over 1,000% in a month could break the trust of the market as a whole. However, if the anxiety that started with these stocks spreads to other stocks, more investors are likely to suffer damage. “GameStop is not an investment,” said Peter Bukhba, Chief Investment Officer of the Brickley Advisory Group. It can’t be a plan for one person’s retirement or portfolio diversification.” “These investors aren’t analyzing stocks, they’re not buying stocks, a piece of a company, but speculating on the ultimate game of the stock market.” I did.

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/New York = Correspondent Kim Young-pil [email protected]

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