📈 GameStop's Wild Ride

Advertise with us | Our Newsletters | Your Rewards

Good Morning!

This week, we're diving into the wild world of meme stocks and the glittering ascent of gold.

In the spotlight is GameStop, back with a bang—and not just any bang, but a 300% surge followed by a crushing 75% drop. We break down the highs, the lows, and what you need to know about this rollercoaster ride.

Meanwhile, gold has hit an all-time high, fueled by expectations of a Federal Reserve interest rate cut. We'll explore why gold is shining brighter than ever and what this means for your investment strategy.

Grab your iced caramel macchiato and let's get into it! ☕️👇️

Markets

📈 U.S. futures inch higher, Nvidia to report this week - what's moving markets

💸 Bitcoin price today: flat at $67k, more Fed cues in focus

🤔 Invest for the Decades, Not the Years

Get value stock insights free.

PayPal, Disney, and Nike recently dropped 50-80%. Are they undervalued? Can they recover? Read Value Investor Daily to find out. We read hundreds of value stock ideas daily and send you the best.

Subscribe with one click.

From our partners

MEME STOCKS

GameStop's Rollercoaster: The Wild Ride Continues

Just when you thought the meme stock madness had died down, GameStop (GME) is back in the spotlight. But this time, it's not just about the soaring highs. We're diving into the recent twists and turns of this rollercoaster ride, so buckle up.

The Highs and the Lows: GameStop's Volatile Week

Last week, GameStop shares rocketed by more than 300%, skyrocketing from $20 to $80. But just as quickly, the gains vanished. Here’s the lowdown:

• Sudden Surge: Fueled by a frenzy of social media posts from the legendary "Roaring Kitty," GameStop shares hit an impressive high.

• Rapid Decline: After peaking, the stock plummeted back to its pre-rally levels, losing a whopping 75% from its high.

• Share Dilution: GameStop announced a plan to sell up to 45 million shares, a move that didn't sit well with investors. More shares mean existing shares are worth less, and the market reacted accordingly.

The Roaring Kitty Effect: Social Media's Power Play

Keith Gill, aka "Roaring Kitty," is no stranger to the meme stock phenomenon. His recent return to social media after a three-year hiatus was nothing short of explosive:

• Influence Reignited: Gill’s posts on X (formerly known as Twitter) reignited the meme stock craze, bringing GameStop and AMC back into the limelight.

• Meme Stock Frenzy: His influence from the 2021 meme-stock saga proved once again how a few well-timed posts can create a market storm.

The Bottom Line: What This Means for Investors

The GameStop saga is a stark reminder of the volatile nature of meme stocks. Here's what you need to keep in mind:

• Market Unpredictability: Meme stocks can be incredibly unpredictable. What goes up rapidly can come down just as fast.

• Due Diligence: Always conduct thorough research before diving into the hype. Social media buzz can be tempting, but it’s no substitute for solid financial analysis.

• Long-Term Vision: Consider your long-term investment goals and risk tolerance. Meme stocks might offer short-term thrills, but they can also lead to significant losses.

Stay informed, stay cautious, and as always, do your homework before jumping on the meme stock bandwagon.

COMMODITIES

Gold's Glittering New Heights

As GameStop takes investors on a wild ride, another asset is shining brightly: gold. Gold prices (XAUUSD) rocketed to a fresh all-time high early Monday during the Asian session, fueled by expectations of a Federal Reserve interest rate cut. Let's break it down.

Gold's Record-Breaking Surge

Early Monday, gold soared to a record of $2,445 per ounce, breaking its previous high of $2,430 set in April:

• Driving Factors: The surge is driven by investor belief that the Federal Reserve will cut interest rates, boosting gold’s appeal as a non-yielding asset.

• Silver's Climb: Silver also benefited, hitting $32, a high not seen since 2013, though still below its 2011 record of $49.78.

Why Gold is Shining Bright

Several factors are contributing to gold's glittering performance:

• Declining Inflation: Lower inflation figures are shaking up the investment landscape. Gold, as a non-yielding asset, becomes more attractive when inflation is low.

• Interest Rate Expectations: With expectations of a Federal Reserve interest rate cut, investors are dumping dollars and seeking more lucrative bets.

• Safe-Haven Appeal: Despite some global uncertainties, traditional safe havens remain relatively unchanged. However, gold's appeal as a hedge against market volatility continues to grow.

The Investment Landscape: What This Means for You

Gold’s recent performance highlights its role as a critical asset in uncertain times. Here's why you should pay attention:

• Inflation Hedge: Gold is often seen as a hedge against inflation. As inflation trends downward, gold’s attractiveness increases.

• Diversification: Adding gold to your portfolio can provide a balance, especially during economic downturns or market volatility.

• Long-Term Stability: While gold prices can be volatile, they tend to hold value over the long term, making them a stable investment choice.

Our Recommendations:

💻️ MEXC - Where we find and trade Crypto with low fees.
📈 TradingView - Software we use to chart stocks.
🔐 Trezor - Our favorite hardware wallet to keep our Crypto secure.
🦑 Kraken - Where we buy crypto with cash / withdraw profit to our bank.

Your thoughts

Thanks for reading, if you enjoyed, tell your friends!

P.S: If you're interested in crypto and web3 - check out our new newsletter, The Crypto Journal!

Share The Investing Journal with your friends to receive rewards!