GameStop, short-sellers, Reddit rebels and Wall Street’s wonky plumbing
What was the furore over US retailer GameStop really about? Is silver the next big social media-driven trade? And what does any of this mean for sensible long-term investors? John Stepek tries to unravel the story.
Hedge funds: hedge funds are the same as normal funds except a) they can use strategies such as shorting that regulators consider too risky for “retail” investors and b) they charge a lot more. Their mystique is pure branding – like most actively run funds, they struggle to beat the market long term.
YOLO: You Only Live Once, with the implication being, why not take a big bet on a high-risk stock? Needless to say, some unfortunate investors will be learning the answer to that the hard way.
HODL: “Buy and hold” rather than trade. The term caught on after a drunken bitcoin investor captured the popular imagination with the late-night typo, “I AM HODLING”, on a cryptocurrency messaging board in 2013.
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Diamond hands: holders who will never sell until they reach their goal, whatever that may be – as opposed to paper hands who fold “too early”.
Stonks: a comic mis-spelling of “stocks”.
Tendies: profits. Named after chicken tenders (battered chicken). Don’t ask.
