Michael James, of Profits Run, Warns GameStop Short Squeeze Could Hurt Soon-to-Be Retirees
Michael James, of Profits Run, today cautioned that the recent GameStop rally could have major consequences for investors close to retiring and cause a major ripple effect in the market.
NEW YORK, Jan. 29, 2021 /PRNewswire-PRWeb/ -- Michael James, of Profits Run, Inc., warned that the GameStop and AMC Entertainment Holdings, Inc. short squeeze movement, fueled by retail investors from the subreddit wallstreetbets, will inevitably hurt older investors near retirement. Michael James explained, "What the 'short squeezers' haven't realized is that, ultimately, the hardest-hit casualties of this continued behavior will be long-term, buy and hold investors set to retire soon. In order to bail out Melvin, other hedge funds – Citadel and Point72 – had to sell their long positions on more widely held stocks. If more hedge funds end up needing bailouts, a domino effect could quickly follow, unfairly slicing through the market's top performers. And, by proxy, anyone ready to cash-out of their retirement portfolio."
On Unseenopp.com, Michael James continued, "Sure, Wall Street will feel a little pain. But in the long run, they'll snap-up failing hedge funds for cents on the dollar, eventually flipping them into highly profitable value plays...Just know that the "fat cats" are mostly equipped to weather the short squeeze storm. Everyone else will become collateral damage in the war on Wall Street, no matter how much higher GameStop's "moonshot" extends from here."
Reddit is a social news aggregation, web content rating, and discussion website. It has been a major staple of internet culture for decades and prides itself as a promoter of free speech and defender of net neutrality. Reddit is divided into many separate communities, known as "subreddits". The short squeeze originated from the r/wallstreetbets subreddit, specifically. (Subreddits are denoted with an r/; e.g. r/gifs, r/houston, r/knitting, etc.) In order to post on Reddit, you must register as a member which is easily done for anyone with an email address.
GameStop is an American retailer that specializes in video games and consumer electronics. It has struggled since the beginning of the COVID-19 pandemic as many locations are in shopping malls and most gamers are now buying digital media instead of physical games. GameStop received attention from the WSB subreddit after the retailer added three new members to its board of directors.
AMC Entertainment Holdings, Inc. is a movie theater chain based in the United States. They have the largest share of the US Theater market. AMC Entertainment Holdings, Inc., like all theater chains, had lost value and suffered financially due to the COVID-19 virus. Earlier this month, they signed a deal for $917 million dollars in financing to avoid bankruptcy.
Michael James is the crypto editor for Profits Run. Michael has a background in technical analysis and long-term cycles and is a cryptocurrency trader. Michael is a blockchain enthusiast who has introduced thousands of investors to the world of digital currency Michael has learned from Bill Poulos's instruction, at Profits Run, for several years.
Profits Run was founded by father and son Bill Poulos and Gregory Poulos in 2001. It is named after the saying, "cut your losses and let your profits run," which is well known amongst traders. Bill Poulos is a retired General Motors executive who turned his trading hobby into a second career. At Profits Run, they have developed many programs and products to protect novice investors, manage their risk and make trading less stressful. Profits Run offers multiple programs and products including 20/30 Wealth Trader, Earnings Profit Alert, Automatic Income Engine, Premium Income Alert, and Rapid Income Engine.
About Profits Run:
Profits Run's mission is to teach regular people how to become better, smarter, and safer investors and traders in any market. The company offers information regarding stocks, options, exchange-traded funds (ETFs), foreign exchange (forex), trading software and coaching. In his over 35 years of trading experience, Bill Poulos has developed dozens of trading systems and methods. In 2001, he formed Profits Run, Inc. to impart his trading experience and wisdom to others so they could shortcut their learning curve. Michael James has learned from Bill Poulos's instruction, at Profits Run, for several years. He has a focused interest in cryptocurrency and blockchain.
Media Contact
BILL POULOS, Profits Run, 248-733-4343, [email protected]
SOURCE Profits Run
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