Two million shares traded
I wonder how many margin calls and assigned puts…
Market meltdowns become chain reactions once they fall far enough. All the super-efficient leveraged portfolios get crushed. Remember LongTerm Capital Management (LTCM) https://en.wikipedia.org/wiki/Long-Term_Capital_Management Peter Lynch referred to its demise in One Up on Wall Street. He was vacationing in Ireland when LTCM blew up the market. He had to sell to cover withdrawals. No margin, no need to sell. Enough cash reserves, no need to sell.
Patience Grasshopper, the market needs to unwind.
Denny Schlesinger
8 Likes
QQQ. 52 week low
DIA. 52 week low
Only green I see is UPST
Only green I see is UPST
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Ya means that same stock that was in $80s last week?
Ya means that same stock that was in $80s last week?
When the bottom falls out of the market there are lots of bargain basement stocks on sale. I have yet to buy any but I’m seriously monitoring the NASDAQ for an entry point. Patience Grasshopper!
As to Upstart I bought some and quickly sold it. Something told me it was not right, maybe because I don’t like credit risk. I kept pondering the idea of AI based lending and it seemed like Upstart was turning away high credit rated customers with sky high rates while encouraging sub par lending which works until it crashes. You can bias AI algorithms any way you want by feeding it the right cases during the neural network training. If you feed it unbiased real world data the algorithms would, in time, beat the best humans just like they did with Chess, Go, and the TV game whose name I don’t remember. I have the feeling that Upstart’s algorithm is not optimal.
I would much rather load up on my current holdings than on less proven wannabes. But, Patience Grasshopper!
Denny Schlesinger
3 Likes