As predicted, it’s all over but the crying. $18 billion lost by retailers just in GME stock in the last 3 days. Following the herd will get you slaughtered.
Are You Not Entertained?
A lot of talk about Robinhood users. The question is why has there been such an increase in the number of users the last few months? I’ve heard the suggestion (and personally thought) it was gambling related. However, it’s almost certainly just people looking to be entertained.
In this graph, I’ve plotted the change in Robinhood positions (weekly smoothed) and some of the major events in 2020.
If you follow the lines, you can pretty much see the story: People were bored and were looking for entertainment.
Just in case, you don’t believe me, here is the Google Trend for Banana Bread (You can use stay at home or puzzles or whatever COVID entertainment search term you want) and RH user changes.
Trading was just another form of entertainment. We’ll look at how much the game cost soon.