Gather Money Little By Little? The news about GameStop and AMC Entertainment

Gather Money Little By Little? The news about GameStop and AMC Entertainment
If you’ve been watching the news, you’ve probably heard about some extreme circumstances in the stock market.

Amongst these newsworthy stories, AMC Entertainment (AMC):



It is not normal to see a stock rising and falling like this on a weekly basis.

And then there’s GameStop (GME):



Same thing with GameStop.  It’s very unhealthy to see this vast amount of speculation.

These moves have come from a bit of a “standoff” pitting small investors against hedge funds that were betting on these companies going out of business. The surprising run-up comes from what is known as a “short squeeze.” This occurs when a stock jumps sharply higher, forcing traders who had bet that its price would fall to buy it in order to forestall even greater losses. Their scramble to buy only adds to the upward pressure on the stock’s price (Investopedia).

The standoff will soon end, and unfortunately the majority of investors will lose because greed will outweigh sound decision making.

We are committed to avoiding such speculative decision-making.

We believe the path to consistent gains is through investing in fundamentally superior stocks. Many of our stocks have posted positive earnings reports, catapulting their prices higher.

For instance, a stock we have held for several months is now seeing GameStop (GME)-like returns today.  Novavax, Inc. (NVAX) is up over 60% today, after it revealed the efficacy of their COVID-19 vaccine against transmissible and more resilient strains of the virus. During testing, the vaccine had 89.3% efficacy in its U.K. Phase 3 trials.



The bottom line is that focusing on earnings and companies with a promising future is still working.  Speculating and gambling are not the way to riches.  As the Bible says in Proverbs 13:11, “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.”

Sources: Yahoo Finance,, and JP Morgan Market Insights

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