Meme Stonks Part Deux: AMC, Algos, and The Fed

We've seen this movie before, but it still doesn't really make sense: a group of traders has taken up the cause of inflating the stock price of a motley bunch of stocks, including AMC as the most prominent company this time around. There are hints of financial populism as there were with GameStop in January, but this time it feels more like pure financial nihilism. On today's episode of The Razor's Edge, we talk about the difference between round one and round two, how AMC should have something of a future even if it's more than priced in, and how given the trading volumes it would be rash to assume retail traders are truly driving this movement. We also talk about the body lurking in the background who could, if they so chose, take action to stop or slow this mania. Jerome Powell, you're our only hope? We break it down. Topics Covered 3:15 minute mark – Meme stocks part deux, and the bleeding from trading into investing 11:30 – The abstraction of what moves a stock, and AMC vs. GME fundamentally 24:00 – Where does this leave AMC and the countercultural movement behind the meme stocks 34:00 – The algorithmic muscle behind these moves 39:00 – The blending of signal and noise and market virality 46:30 – The fight against financial nihilism: Here comes the Fed? 53:00 – Risk reward of proactive action vs. reactive from the Fed 1:00:00 – The limits of regulation vs. the limits on liquidity 1:04:00 – What might the Fed actually do 1:13:00 – The weirdness of the recent past and how that compares to our current climate, and where that leaves the Fed 1:18:00 – Fed Credibility Also, check out another Shortman Studios podcast, the Big Tech Ticket, featuring conversations on the biggest issues in tech. https://podcasts.apple.com/us/podcast/the-big-tech-ticket/id1565981471  

Om Podcasten

The Razor’s Edge is an investing podcast that combines a prop trader’s viewpoint and deep-dive fundamental research to provide a unique take on the markets. The show is co-hosted by Akram’s Razor, a trader and investor with decades of experience and a track record of truly differentiated ideas and analysis, and by Daniel Shvartsman, an individual investor for the past decade who saw thousands of investing pitches and ideas and how they played out during his previous time at Seeking Alpha. The duo start with a theme or idea from Akram’s investing, then break it down to understand what goes into the idea, what could go wrong, and what else investors and traders need to know. They also interview industry leaders, executives, and other investors to get a wider perspective. The show has thousands of listeners around the world.