Refreshing my knowledge of study of the stock market/Carlos Pueblo
For the past week during the Game Stop drama. I have been refreshing my study of the stock market ever since. I have been preparing several times to pass the general security license, series 7, since the early 80's. It is not difficult for me to understand my son Arthur's trading. He is on the opposite side of the short seller called the short squeeze and I am very relaxed because that he is making some money and is out of it. I don't think that the Wall Street knows how to handle the squeezers. The phenomenon is still on and nobody knows when it will be end.
All what I can explain is the few short sellers are facing a huge numbers of the short squeezers. Big numbers is the terminology of the insurance. The insurance is talking about the big numbers to counter the uncertain risks. Now, the big group of the on line platform readers get the attention of the wall street establishment. They cry for the help of the Security Exchange Commission to have a new regulation and I don't know how and no body tells me how.
Can you prohibit long purchases of stocks after a huge short sells from a few? You have to prove who are on the side of the manipulation of the market. After the famous October 19,1987 crush, one of an explanation which I like very much is the circulation of money to meet the demand of the market; therefore, each time of the economic abstraction, we print more money to meet the demand. We don't like the government to compete money with the public. Interest rate is low and the money is plenty around. Hedge fund owners have money while a bulk of squeezers have huge money as well if you can do the multiple.
I feel that I am a looser when I read that an oil company is the most generous to the hedge fund short sellers in 2019 because I own that stock for more than 30 years. Now I also understand why my auto stock is depressed not like an electrical vehicle stock. It is because that both of them are very solid companies. The prior one is week because the drop of the oil price which can not reflect their asset under the ground and the later one is a closed held foreign stock in a much different business culture nation.
I believe that people are still with the opportunity in the security saving and investment. I would say in the mutual fund and go to the index first for our hard earned money to have a chance to grow. Let's watch the drama of the Wall Street.
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