This is Financial Advice
Folding Ideas
151 min, 44 sec
A detailed exploration of the meme stock phenomenon, particularly the rise and fall of Bed Bath & Beyond and the Ape movement's unwavering belief in the 'Mother of All Short Squeezes' (MOASS).
Summary
- The Ape movement, driven by overconfidence, gambles on meme stocks like GameStop and Bed Bath & Beyond, believing in a massive short squeeze despite mounting evidence to the contrary.
- Apes, following figures like Ryan Cohen, engage in speculative and conspiratorial thinking, often interpreting innocuous events as secret messages supporting their financial theories.
- Despite numerous failed predictions and persistent stock devaluation, Apes remain committed to their cause, often to the detriment of personal relationships and financial stability.
- The movement has been exploited by hedge funds and has faced internal strife due to its echo chamber nature and aggressive policing of narrative consistency.
- The ultimate demise of Bed Bath & Beyond in bankruptcy court has not deterred the Apes, who continue to cling to the hope of a financial windfall from meme stock investments.
Chapter 1
The early days of the Ape movement and the GameStop short squeeze that set the stage for the meme stock craze.
- The Ape movement started with retail investors targeting GameStop, believing in a significant short squeeze against hedge funds like Melvin Capital.
- Social media platforms, particularly Reddit's WallStreetBets, were the breeding ground for the Ape culture, focusing on 'holding the line' to drive stock prices up.
- The frenzy led to a peak in GameStop's stock price in January 2021, creating an unprecedented situation where retail investors saw dramatic gains.
Chapter 2
The belief system of the Apes and their unwavering commitment to the meme stock narrative, despite evidence of its flaws.
- Apes hold a nuanced read on the GameStop phenomenon, seeing it as a social media-driven event that defied conventional market wisdom.
- The community developed a complex lore around the stock market, viewing their investments as part of a grand battle against financial elites.
- Despite numerous debunks and the reality of market forces, Apes remain devoted to their version of reality, which promises infinite rewards for their investment.
Chapter 3
The Apes' adoration of Ryan Cohen, his involvement with Bed Bath & Beyond, and the company's eventual bankruptcy.
- Ryan Cohen, elevated to a cult-like status by Apes, became the focus of conspiracy theories and wild financial predictions.
- Cohen's involvement with Bed Bath & Beyond, followed by a quick divestment, led Apes to concoct elaborate theories of hidden motives and secret strategies.
- The bankruptcy of Bed Bath & Beyond did not deter the Apes, who continued to reinterpret events to fit their narrative of an impending financial reckoning.
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