Why is GameStop stock going crazy?
25% today
37% for the week
28% for the month
But minus 34% for the year
9 comments
It's still a meme stock. There are true believers out there who still think it will go to the moon, or at least hit the 80 dollar squeeze mark again.
It sounds like interest rates have probably peaked and speculators are feeling more confident these days?
The stock market and casinos are both equally crazy. Gambling makes things move up and down for no rhyme or reason. I will take the 5.85% CD Roth instead.
The reason GME is popping is that they report on Dec 6. They are particularly option-driven. Look at the Dec 8 $20 call and you'll see a pretty big OI. I wrote a more in depth explanation on the mechanics of how the options tail wags the underlying but deleted it because the chances of any of you caring or understanding is slim to none.
As for a Roth CD, if you already have a good chunk in a Roth, sure. But you can't contribute if you make more than $144k, and your max contribution is $7k per year. If you had real money and wanted a risk free investment you'd buy 5 year notes yielding 4.5% if you had been smart enough to buy them before this week. No cap, no risk. Well, interest rate risk in the next 5 years, but if you're willing to hold to maturity (as you would expect to do with a 5 year CD, for example) no risk.
What's real money? What's rich?Different for all. A brother of mine feels living on the water in Palm Beach and having a wine locker at the capital grill is a big deal. He feels wealthy. I have zero interest in either and am much happier with the Bs on the tube, a $3.00 beer and a steak and cheese at Breen's. I too feel wealthy.
My comment was not a judgment on wealth or riches. I am not wealthy and am happy either way. My comment was simply to highlight what you would do if you had a large sum of money to invest similar to what you suggested but were not eligible for a Roth. Said another way, people with a lot of money (more than a few hundred thousand) who want risk free returns don't put it in banks or IRAs or CDs. They buy treasuries. It replaces "money" as a store of wealth.
9 comments