GameStop epic squeeze battle is about to end? On Tuesday (2nd), GameStop dropped 42% at the opening. After several breaks and limits, the stock price fell further by 60%. Before the deadline, it temporarily reported about 89 per share. USD。
GameStop (GME-US) The stock price surged 700% to 325 last week USDSince the market closed last Friday (January 29), GameStop has now fallen by more than 70%.
Other retail investors’ sought-after stocks also suffered a selling spree. AMC Entertainment (AMC-US) Fell more than 38%; Express (EXPR-US) Fell 32%; Bed Bath&Beyond (BBBY-US) Fell 14.5%; Stitch Fix (SFIX-US) Fell 5.5%; Macy’s (M-US) Fell 3.6%.
Jordan Belfort, the prototype of the Hollywood movie “The Wolf of Wall Street” and former “Penny Stocks” manager, said on Tuesday that amateur investors in the GameStop trading frenzy may lose everything. This type of investment (machine) is good when it rises, but in It is painful when falling.
Federal Reserve (Fed) Dallas Branch Chairman Robert Kaplan said frankly on Tuesday that large-scale asset purchase plans are one of the reasons for the recent short-selling of Reddit retail investors, although no systemic risks have been seen so far.
Robert Kaplan admitted that one of the main reasons for the current situation is that there is a lot of liquidity in the market, which is equivalent to the acquisition of at least 80 billion yuan by the Fed every monthUSDU.S. Treasuries, 40 billionUSDRelated to mortgage-backed securities.
Robert Kaplan said: “With the COVID-19 pandemic raging, the Fed needs to continue what it is doing, but I again believe that if the epidemic is not taken into account, restrictions on liquidity and normalization of policies will make the market healthier.”
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