Odd Lots Team on the Return of the Meme Trade

Summary

The transcript discusses the volatile nature of meme stocks, particularly GameStop, and compares it to a more traditional portfolio consisting of established brands like Lululemon, Anthropologie, and Starbucks. It touches on the cynical and manipulative aspects of the meme stock phenomenon, questioning the revolutionary narrative some investors use to justify their actions. The conversation also ponders the potential impact if the meme stock crowd turned their attention to commodities, hinting at the unpredictable and significant influence they could have on the market. The discussion also delves into the role of the SEC and whether intervention is warranted in the context of meme investing.

Takeaways

• 📊 The speaker mentions a blended moving average of GameStop stock, indicating an interest in technical analysis.
• 💸 There's a question about who lost money on GameStop, suggesting the stock has had significant price fluctuations.
• 🤔 A comparison is made between a 'meme stock portfolio' and a 'BECKY portfolio', highlighting different investment strategies post-Covid.
• 📉 The speaker reflects on the past performance of meme stocks and how the market has changed, indicating a shift in investor sentiment.
• 🎥 The conversation suggests that the meme stock phenomenon has become less novel and more cynical, with less illusion about its outcome.
• 🚫 The speaker expresses disdain for those who view buying stocks like GameStop as a revolutionary act, arguing it lacks substance.
• 🎰 A more charitable view of meme investing is presented as investing in businesses with personal or nostalgic value.
• 🚨 The uncharitable view is that meme investing could be seen as stock manipulation, hinting at potential regulatory concerns.
• 🤔 The speaker ponders what would happen if the meme stock crowd targeted commodities, speculating on market reactions.
• 📈 The speaker notes the significant dollar volume being traded in meme stocks, indicating their impact on the market.
• 🏒️ The transcript includes a discussion about a potential new coach for the Toronto Maple Leafs, showing a shift in topic to sports.

Q & A

What is a blended moving average and how does it relate to GameStop's stock performance?

A blended moving average is a technical analysis tool that combines different types of moving averages to smooth out price data and identify trends. In the context of GameStop, it is used to analyze the stock's performance over a specific period, showing how it moved from a high of 50 down to 22.

Who are the people that lost money on GameStop according to the transcript?

The transcript does not specifically identify who lost money on GameStop. However, it implies that those who invested in meme stocks like GameStop without understanding the risks may have experienced losses.

What is the difference between the meme stock portfolio and the BECKY portfolio as mentioned in the script?

The meme stock portfolio consists of stocks that have gained popularity through social media and online forums, often with speculative trading activity. The BECKY portfolio, on the other hand, is filled with established, mainstream stocks like Lululemon, Anthropologie, and Starbucks, which are considered more stable and less subject to the whims of social media hype.

How has the meme stock phenomenon evolved since the initial surge in popularity?

The meme stock phenomenon has become more cynical and less novel. People are more aware of the potential for stock manipulation and are less likely to be under the illusion that investing in meme stocks is a revolutionary act against the establishment.

What is the speaker's opinion on Gary Gensler's potential involvement in controlling the meme stock market?

The speaker does not offer direct advice to Gary Gensler but suggests that people should be able to do what they want with their money, including gambling on stocks. However, they express disdain for those who pretend that investing in meme stocks is a revolutionary act.

What is the most charitable interpretation of meme investing according to the speaker?

The most charitable interpretation of meme investing is treating the stock market like a crowdfunding platform for businesses that one has a personal connection with or nostalgia for, such as GameStop or AMC.

What is the speaker's view on the potential for meme investing in commodities?

The speaker wonders what would happen if the meme crowd turned their attention to commodities, causing significant price movements in items like corn, cocoa, copper, coffee, silver, or orange juice.

How does the speaker describe the current state of meme stocks and their trading volume?

The speaker notes that the amount of dollars being traded in meme stocks every day is significant and finds it wild that stocks like GameStop can quickly approach their previous highs.

What is the context behind the mention of Luke Iowa and the Toronto Maple Leafs coaching position?

Luke Iowa was shortlisted for the coaching position of the Toronto Maple Leafs when Sheldon Keefe left the team. However, the opportunity was cut off for him, and it is unclear what he will do next.

What is Sherwood Media and how is it related to the meme stock discussion?

Sherwood Media is described as the new Robinhood, which is an online platform for stock trading. It is mentioned in the context of the meme stock discussion as a place where the person they want to interview has moved to and is now writing about Wall Street.

What rumor is persistently associated with the person being interviewed in the transcript?

There is a persistent rumor that the person being interviewed is a secret Wall Street Bets moderator, which is a popular subreddit known for its role in the meme stock phenomenon.

Outlines

00:00

📉 GameStop Stock Discussion and Meme Stock Portfolios

The paragraph discusses the fluctuating stock prices of GameStop, particularly noting its drop from $50 to $22. It raises a question about which type of portfolio would have performed better since the Covid pandemic: a meme stock portfolio with stocks like GameStop or a more traditional one filled with brands like Lululemon, Anthropologie, and Starbucks. The conversation participants reflect on the meme stock phenomenon, noting a shift from the excitement and novelty of the past to a more cynical and predictable present. They also touch on the idea that some people view buying these stocks as a revolutionary act against the establishment, which the speaker finds nonsensical. The paragraph concludes with a hypothetical scenario where the meme stock crowd turns their attention to commodities, pondering the potential impact on markets like corn, cocoa, copper, and coffee.

Keywords

💡GameStop

GameStop is a retail company that sells video games and consumer electronics. In the context of the video, it is mentioned as a subject of significant stock market attention, particularly due to its role in the 'meme stock' phenomenon. The term is used to discuss the stock's volatility and the behavior of retail investors who have driven its price up and down, often as a form of protest or social movement against traditional financial institutions.

💡Blended moving average

A blended moving average is a technical analysis tool used in stock trading that combines different types of moving averages to smooth out price data and identify trends. In the script, it is mentioned in relation to GameStop's stock performance, suggesting that the speaker is using this tool to analyze and potentially trade the stock.

💡Meme stock

A 'meme stock' is a term used to describe stocks that have gained popularity and attention on social media platforms, often leading to significant price volatility as retail investors rally to buy or sell them. The script discusses the phenomenon of meme stocks, using GameStop as an example, and how they have been perceived and traded by the public.

💡Lululemon

Lululemon is a Canadian athletic apparel retailer known for its yoga wear. In the video, it is mentioned alongside other brands like Anthropologie and Starbucks as part of a hypothetical 'BECKY portfolio,' contrasting it with a 'meme stock portfolio.' The comparison is used to discuss which type of investment has outperformed since the onset of the COVID-19 pandemic.

💡Portfolio

A portfolio refers to a collection of financial assets such as stocks, bonds, commodities, and cash equivalents that are held by an individual or entity. In the script, the term is used to compare different types of investments, such as those in meme stocks versus those in established brands like Lululemon.

💡Covid

Covid refers to the coronavirus disease (COVID-19), which has had a significant impact on the global economy and financial markets. The script mentions Covid in the context of comparing the performance of different investment portfolios since the start of the pandemic.

💡Stock culture

Stock culture in this context refers to the social and behavioral aspects of stock trading and investing. The script discusses how the novelty of meme stocks has worn off and the market has become more cynical, indicating a shift in the attitudes and behaviors of investors towards these types of stocks.

💡Wall Street Bets

Wall Street Bets is a subreddit community on the platform Reddit, known for its discussions around high-risk stock trading and the promotion of meme stocks. The script mentions Wall Street Bets in the context of meme investing and the social aspects of stock trading, suggesting that it is a key platform where the meme stock phenomenon is discussed and driven.

💡Gary Gensler

Gary Gensler is the Chairman of the U.S. Securities and Exchange Commission (SEC), responsible for regulating the securities industry. The script raises a hypothetical question about whether he should intervene in the meme stock market, indicating a debate about the role of regulatory bodies in managing market volatility and potential manipulation.

💡Commodities

Commodities refer to basic goods that are interchangeable with other goods of the same type, such as agricultural products, metals, and energy resources. The script speculates on what might happen if the enthusiasm and speculation surrounding meme stocks were to shift towards commodities, suggesting a potential for significant market impact.

💡Cup and handle

A 'cup and handle' is a bullish technical chart pattern used by traders to identify potential increases in a security's price. The script mentions 'a long cup of coffee,' which is a colloquial way of referring to a prolonged consolidation phase in a stock's price movement, possibly indicating a setup for a future price increase.

💡UBS

UBS is a Swiss multinational investment bank and financial services company. The script mentions UBS in the context of a person's career path, suggesting that they may have been employed there at some point. It provides a backdrop to the discussion about the financial industry and the individuals involved in it.

💡Sherwood Media

Sherwood Media is mentioned in the script as a new venture, likened to Robinhood, which is a financial services company that offers commission-free trading. The mention of Sherwood Media adds to the discussion about the evolving landscape of financial services and the impact of technology on stock trading.

Highlights

Discussion on the blended moving average of GameStop's stock price fluctuation.

Inquiry about who lost money on GameStop and a segue into Lululemon's stock drop.

Comparison between the performance of meme stock and BECKY stock portfolios since the Covid pandemic.

Meme stock culture and its perceived novelty and value compared to the past.

The cynicism and awareness in the current meme stock market compared to previous times.

Opinion on the futility of trying to front run the next person in meme stock investments.

Critique of those who frame buying GameStop or AMC as a revolutionary act.

Personal stance on allowing individuals to gamble with their money in stocks.

The most charitable interpretation of meme investing as a nostalgia-driven business fund.

Concerns about stock manipulation and its relation to regulatory oversight.

Speculation on the potential impact if the meme crowd targeted commodities.

Observation of significant daily dollar volumes in meme stock trading.

Toronto Maple Leafs coaching rumors and the shortlisting of Luke Richardson.

Discussion on the career path of Sheldon Keefe and his departure from the team.

Musing on the potential addition of Craig Berube to the coaching staff.

Transition to the topic of Sherwood Media, a new financial platform likened to Robinhood.

Rumors and speculations about a Bloomberg employee's involvement with Wall Street Bets.

Transcripts

I got a blended moving average GameStop from 12 to 50 down to 22 in a long cup

of coffee. Who lost money on GameStop?

You know what? I'm kind of wondering, since you

mentioned Lululemon dropping just then, I'm wondering which portfolio, the meme

stock portfolio or the BECKY portfolio full of like Lululemon and Anthropologie

and Starbucks or whatever else, which one would have outperformed since Covid?

Well, yeah, I mean, there is this. I mean, you guys are focused on this

joke. You you're doing the meme stock thing.

Yeah, that's right. We're doing the meme segment here.

You know what's different this time around versus the less time and lots

beat the meme stocks to death. Mm hmm.

Yeah, well, we crushed it last time and crushed it this time.

You know, I think everyone just, like, seen it before.

Stock culture, a little tired. It was very interesting and novel and it

like, is there something here that people don't understand as these value?

And this time it's like we it feels like we ran the entire story.

It's like we fast forward into the end of the video tape really fast because

like, yeah, we know this story. We know how it ends.

We know how it ends. Before you might be able to make a

little bit money front running the next person.

But no one really seems to be under any illusions that well, it also feels much

more cynical on that. You know, everyone kind of knows what

they're doing. Whereas last time there was the whole

narrative of apes together. Now there are lots and lots of drive

towards cynicism Now, never, ever happen between your two really eclectic

backgrounds. Should Gary Gensler step in to quote

unquote control clowns in the meme stock area?

Who wants to take this? I will.

I will give you my take, which is I will not offer advice to Gary Gensler, but

this is my take. Listen, so be nice, okay?

I don't you know, people should be able to do whatever they want with their

money If they want to gamble in stocks and pay over it, go for it.

The only people that I really dislike and loathe in this entire situation are

the people who pretend that buying GameStop or buying AMC is some sort of

like revolutionary act, like sticking it to the man or like doing it.

It makes no sense. There's no like, there's no there there,

right. It's the idea is like, oh, you're going

to buy GameStop is going to be some populist act and overturn the elites

because it's like the Fed has some huge short position on GameStop and they're

going to like, come on. And so, like the only people who I think

are like, really like, contemptible in the whole situation are those people.

But everyone knows, like if you want to gamble, if you want to have fun, if you

want to like, you know, post your screenshots, the Wall Street bets of how

much money you made or lost. Be my guest.

The most charitable interpretation of meme investing, I think, and the one

that I sometimes subscribe to, to make myself feel better is if you want to

treat the stock market like a go, fund me for a business.

Right? That you have feelings about whether

it's GameStop or AMC, you have this sort of nostalgia associated with it, then

fine. I guess the most uncharitable

interpretation of it would be stock manipulation, and that's where you get

into the Gensler stuff. I will say every once in a while I think

about what it would be like if the meme crowd came for commodities.

And I don't know if you remember in the original meme stock craze 2021, there

was some talk of going after Silver, and I think there was like a tiny bit of a

squeeze, but then it petered out. Sometimes I wonder what would happen

then and whether feelings would start to change if suddenly people are squeezing.

I don't know the price of corn or something.

Huge moves in cocoa. That's right.

Moves in copper, huge moves in coffee, silver, orange juice, commodities have

been repeats, so who knows? But I just know that meme stocks this

time around, the amount of dollars actually being traded every day is

really significant. So I'm always like, Dude, it's pretty

wild that GameStop basically got very close, not quite to its highs from the

last cycle from like nowhere, but it's like that was like so fast.

You, I do think like, yeah, well we're going to have to provide wisdom on this

surely. You know, I mean, he was shortlisted for

the new coach of the Toronto Maple who Sheldon Keefe is out and they pick Craig

Burby, which I get because of his work with the Flyers and the Blues.

But I'm sorry, Luke, Iowa was shortlisted for that.

So yeah, Toronto. What's he going to add to this?

I don't know. I mean, I know that he's dead now that

his career path of coaching the Toronto Maple Leafs has been cut off.

I don't know what he's going to do, but apparently he has regained gardening

leave. He's not well, I think he had about 5

minutes of gardening switching between is he still at UBS or is he he Louise

left. He's over at Sherwood Media now, which

is the new Robinhood. Speaking of only belly of the belly of

the meme stock. But he gets to write again.

But the reason we want to talk to him is because I think he was the first person

at Bloomberg to really dive into Wall Street.

But yes, early like a year before a year or two years before the meme stock craze

took off. And then there are persistent rumors.

And I plan on asking him about this when we do the interview that he is in fact a

secret Wall Street bets mod. So is that really.

A rumor that people spread a lot.