Comment by unyttigfjelltol
2 months ago
We'll look back and see with clear eyes the transient phenomena that made strange and magical meme stocks and unicorns what they all were. Somewhere in the last 50 years stock investing turned from green-eye-shade economic analysis to a social phenomena that couldn't be bothered with dividends and profits.
I go to the supermarket and milk is on sale, I buy two. But momo clowns go and see milk is on sale and they try to sell the milk they have on hand back to the store. They don't act like the products they buy have fundamental value, because in many cases that value was inflated wildly beyond justification long before the trader ever got started.
I mean, it’s widely understood. There was deregulation in the ‘80s that kicked off the financialization trend (along with private industry customs being invented like Jack Welch’s whole chasing shareholder value uber alles shtick), and then the interest rates cuts in the wake of the 2008 recession (and then again during the pandemic) superheated this kind of behavior.