Tag: Larry Light

Everybody Says Higher Interest Rates Are Coming … But When and By How Much?

Mary Pat Campbell

Link: https://www.ai-cio.com/in-focus/market-drilldown/everybody-says-higher-interest-rates-coming-much/

Graphic:

Excerpt:

Absent that nightmare scenario—and most prognosticators believe science can vanquish any of COVID-19’s shape-shifting—the conventional Wall Street wisdom is for better days ahead on both the health and the economics fronts. And since escalating rates are co-dependent on an improving economy, a sunny thesis appears pretty solid.

Historically speaking, low rates like today’s are an aberration. Thus, at some point, it’s reasonable to assume they will return to normal. Or at least to higher than now, to a degree. A new normal that’s hardly towering.

Author(s): Larry Light

Publication Date: 9 February 2021

Publication Site: ai-CIO

How GameStop’s Robinhood Boosters Are Clobbering Hedge Funds

Mary Pat Campbell

Link: https://www.ai-cio.com/news/gamestops-robinhood-boosters-clobbering-hedge-funds/?apos=2_art&utm_source=newsletter&utm_medium=email&utm_campaign=CIOAlert

Excerpt:

Investors who sold GameStop short have lost $23.6 billion so far in 2021 through Wednesday, by the count of financial analytics firm S3 Partners. That includes $14.3 billion yesterday, as the retailer’s stock price shot up 135%.

In response to the controversy, Robinhood and Interactive Brokers Group curbed trading on GameStop, AMC, and several others Thursday morning. GameStop shares began to reverse direction. How long the restrictions would last was unclear. Frustrated amateur traders, of course, might just take their business to platforms that don’t limit them.

The pain is intense for these hedge funds. Citron Capital’s Andrew Left, often disparaged on Reddit, just said his firm folded a GameStop short bet, after losing 100% of its money spent on the transaction. Melvin Capital Management has slumped about 30% as the result of GameStop short sales, according to published reports. New York Mets owner Steve Cohen’s Point72 fund and Ken Griffin’s Citadel have stakes in Melvin.

Author: Larry Light

Publication Date: 28 January 2021

Publication Site: ai-CIO