ska invita
back on the other side
And then on top of that there are all the bullshits tricks and instruments and attacks and manipulations. Needs binning.
Redditors vs the hedge funds
- Thread starter NoXion
- Start date
The basic concept of derivatives serve a useful function — in principle, they allow for prudent financial management by allowing institutions to instantly rebalance a position and then gradually adjust their underlying holdings on a more sensible timetable. The monster it has become isn’t worth this one use case though. The whole lot needs binning.
not-bono-ever
meh
The smartest people on the planet come up with these mechanisms.imagine if that intelligence could be put to good use
BigTom
Well-Known Member
Couple of other things with this:
1) Some owners (pension funds especially) are not buying shares to gain profits from increased prices, they are buying shares to get an income from dividends. They will usually be doing this in something like a FTSE 100 share index which means that the only time they look to sell shares is when a company drops off the bottom of the top 100 companies, and the only time they buy shares is when a company enters the top 100 companies. What this means is that they will always buy/sell at the lowest price in that bracket. As the price of the stock market rises over long term periods, they are anticipating always being able to sell shares at about the same or a slightly higher price than they bought them for - essentially they are just swapping shares from one company to another. I assume that their rental agreement allows them to demand the return of shares that they want to sell, I know this is possible.
Short sellers may well be looking at short term price changes and trying to do whatever the short selling version of "buy the dip" is. They think the price is going to fall in the short term - doesn't mean they think the company will go bust or the shares will become worthless. They just see something which makes them think there'll be a price drop in the near future. They might even think that long term the price will rise but it doesn't matter because they are in it for the short term.
2) The owner might disagree with the short seller and think the share price is going to rise, not fall. In this case renting out the shares is just pure profit from them. Perhaps they get it right, perhaps they get it wrong. In any case, if they are wrong they'd be losing money on the sale of the shares anyway, this way they get to hedge their bet and earn some money if the share price collapses.
Are there any hedge funds doing this for the common good, or are they all just assholes? (e.g shorting big oil conglomerates and then starting 'rumours' of an impending climate disaster and how oil companies are useless etc.)
I certainly don’t think any are doing it for the common good. At best, there is some common good served by accident.
Idaho
blah blah blah
Sell the breakout
ska invita
back on the other side
then there are the ones that reach the top and end up in politics and run the economy. how scary is that
Last edited:
NoXion
Craicy the Squirrel
Funny you should say this, because the finance and banking sectors actually really have been poaching talent from STEM fields, leveraging the fact that big commercial banks can afford to pay better than universities or even commercial R&D.
Cancerous.
not-bono-ever
meh
My PhD niece was being chased by a couple of big banks a couple of years ago. She now works under Fauci at the NIH in Washington for about a 5th of the £
not-bono-ever
meh
My anti capital bleating and subversion might have influenced her. I hope
ska invita
back on the other side
yup happened to my cousin - he's by far the most academic person in my family, he got to teaching string theory in an eastern european university. his pay covered a bedsit, which wasnt going to fly when he had kids. he had to quit his passion (physics) and now does "something" in banking, god knows what. he's great at maths.
its a vampire business on every level
not-bono-ever
meh
I know an Oxford physics PhD who was tempted out of CERN for slabs of cash.
magneze
🎧
Yep, it's a big problem.
nogojones
spelling is overrated
Same. A school friend dumped CERN for the cash. Said it was the same maths he was doing at both.
mauvais
on reddit or something
I know lots of software engineers that go and work for banks, which is not surprising since they pay about double what I get. Most of them don't stick at it for very long though because it's not a nice place to be - horrible culture but also boring, highly restrictive work. Look at the ancient computer but do not touch it.
I suppose that if a company held too many shares to sell at one time, and expected the price to fall, they could lend some to short sellers, sell as much as possible and take the rental fees against the loss on the remaining shares?
ska invita
back on the other side
Being reported there was another reddit squeeze on hedge funds yesterday
www.theglobeandmail.com
Some Redditers are suspicious that it is being reported so positively and so think its some kind of diversion tactic.
i know nothing!
Rocket Companies shares soar more than 70%, hurting short sellers
Stock draws interest on Twitter and Reddit’s popular WallStreetBets.
www.theglobeandmail.com
Some Redditers are suspicious that it is being reported so positively and so think its some kind of diversion tactic.
i know nothing!
Last edited:
Combustible
Well-Known Member
Then again the whole structure of university research ensures that the vast majority of PhD graduates will not be able to make a career of it. Simply look at the number of STEM PhD graduates vs number of faculty positions. And while I agree that no rationally organized society would plow resources into the finance industry, the existence of high paid finance jobs as a fallback is also a reason that some people will be prepared to take a punt at a PhD + research career.
NoXion
Craicy the Squirrel
I think commercial STEM research and development also suffers because of this kind of shit. I think designing better machinery and industrial processes does a whole lot more good for society than any amount of banking shenanigans.
The Octagon
Stop...Hammertime
I picked up a GME share in February after watching the initial January spike, cost me about £60, leaving it untouched to see what happens.
I'd have only put that and more in a fruit machine at the pub, by comparison this provides days/weeks/months of entertainment vs 10 mins.
I'd have only put that and more in a fruit machine at the pub, by comparison this provides days/weeks/months of entertainment vs 10 mins.
The Octagon
Stop...Hammertime
Currently hovering round the $150 mark, up from $137 on Friday.
Jumped up to $165 at one point this morning, but likely to fluctuate wildly in the 10-15 point range.
ska invita
back on the other side
The trajectory is good
ska invita
back on the other side
big week last week and went ballistic today
zoom in though and it hit $350 today - thats where it hit in the original newsworthy peak
I don't know the details but it sounds like trading was stopped multiple times today?
The crash from 350 to 200 was described by some as a desperate manipulation by hedges?
I havent looked closely into that - only just had a peak.
If anyone has more details please post.
zoom in though and it hit $350 today - thats where it hit in the original newsworthy peak
I don't know the details but it sounds like trading was stopped multiple times today?
The crash from 350 to 200 was described by some as a desperate manipulation by hedges?
I havent looked closely into that - only just had a peak.
If anyone has more details please post.
muscovyduck
Good IT skills and food hygiene competent
The AMC one has gone up too but BB hasn't. Both of these were the reddit fallback options last time but I'm not following the subreddit to know what's going on this time. I remember they were less interested in Blackberry than AMC and by the end some people were suspecting the BB hype had been a ruse (like the attempts to hype up silver on the subreddit)
Similar threads
