The stock market has seen an increase in volatility due to allowing people to trade on margin with low bank account balances and volatile stocks. Despite the attention being drawn to it, more people are buying GameStop which will eventually lead to its downfall.
The Federal Reserve's actions, such as flooding the market with Treasury bills, can affect the stock market by making it more or less attractive to investors. However, too much money in the economy can lead to inflation and higher prices.
The recent stock market meltdown raises questions about the role of computer algorithms in financial decisions during a crisis. These automated programs can lead to bizarre outcomes during times of market volatility and create a new layer of risk in the market.
The speakers discuss analyzing time series data to gain fundamental understanding of the stock market and improve platform health, rather than solely focusing on market value.
The podcast discusses the concept of long-term investing in the stock market, including the potential for both good and bad periods, while offering advice on how to determine the viability of long-term investing plans.
When shorts begin to worry, the price of a stock runs up and they try to close out their positions which puts buying pressure on it. This results in the shorts being forced to cover their positions, and causing the stock price to rise rapidly.
The hosts discuss how the stock market seems to be the only way for regular people to build some sort of wealth, even though the system is designed to be exploitative towards them. They also comment on the fact that critics often judge the 'how' of people fighting against the system, without fully addressing the 'why'.
The speaker shares their experience of investing a large amount in the stock market, resulting in significant losses, and then borrowing more money to invest again.
