The GameStop case is puzzling investors all around the world.
The US company wasn't thriving during the covid-19 pandemic due to restrictions.
GameStop is a high street shop that sells games, consoles and other electronics.
With fewer people out shopping due to the lockdown restrictions and most games being sold on the internet, things weren't looking great for GameStop.
A large numbers of people in the wallstreetbets Reddit forum swapped tips and bought shares in GameStop.
The demand raised its share price massively.
Shares in GameStop have increased once again by more than 80% this Friday as online trading platforms have lifted restrictions temporarily.
The volatility is expected to continue.
Is Gamestop the revenge of the small investor or yet another massive bubble?
If small investors believe part of the market is rigged and some people in Wall Street undertake illegal activities: Why do these so-called Robin Hood platforms decide to do things that are borderline illegal if not exactly the same as what they accuse others of doing?
You don’t fight illegal activities with more illegal conduct.
If you hate it when somebody tries to pump and dump a stock, why would anyone incentivise it?
Daniel Lacalle is one the most influential economists in the world. He is Chief Economist at Tressis SV, Fund Manager at Adriza International Opportunities, Member of the advisory board of the Rafael del Pino foundation, Commissioner of the Community of Madrid in London, President of Instituto Mises Hispano and Professor at IE Business School, London School of Economics, IEB and UNED. Mr. Lacalle has presented and given keynote speeches at the most prestigious forums globally including the Federal Reserve in Houston, the Heritage Foundation in Washington, London School of Economics, Funds Society Forum in Miami, World Economic Forum, Forecast Summit in Peru, Mining Show in Dubai, Our Crowd in Jerusalem, Nordea Investor Summit in Oslo, and many others. Mr Lacalle has more than 24 years of experience in the energy and finance sectors, including experience in North Africa, Latin America and the Middle East. He is currently a fund manager overseeing equities, bonds and commodities. He was voted Top 3 Generalist and Number 1 Pan-European Buyside Individual in Oil & Gas in Thomson Reuters’ Extel Survey in 2011, the leading survey among companies and financial institutions. He is also author of the best-selling books: “Life In The Financial Markets” (Wiley, 2014), translated to Portuguese and Spanish ; “The Energy World Is Flat” (Wiley, 2014, with Diego Parrilla), translated to Portuguese and Chinese ; “Escape from the Central Bank Trap” (2017, BEP), translated to Spanish. Mr Lacalle also contributes at CNBC, World Economic Forum, Epoch Times, Mises Institute, Hedgeye, Zero Hedge, Focus Economics, Seeking Alpha, El Español, The Commentator, and The Wall Street Journal. He holds a PhD in Economics, CIIA financial analyst title, with a post graduate degree in IESE and a master’s degree in economic investigation (UCV).