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Trading Frenzy

All articles tagged with #trading frenzy

business2 years ago•6 min saved

FTX's Carcass Trading Sparks Hot New Crypto Market Trend

Investors are engaging in a trading frenzy for FTX bankruptcy claims, betting on the recovery of funds misappropriated by FTX's founder, Sam Bankman-Fried. The market for FTX claims has exploded, with some claims selling for over 70 cents on the dollar. Hedge funds and investment firms, as well as investors with checkered histories, have shown interest in the market. The recovery process has moved faster than expected, with claims that once traded for a few cents now surging in value. However, there are risks involved, and the amount FTX will ultimately pay back remains uncertain.

via The New York Times|

#bankruptcy-claims #business #cryptocurrency

finance2 years ago•2 min saved

Bond Market Turmoil: Record Trading Frenzy and Durable Funds Shield Investors

The iShares 20+ Year Treasury ETF (TLT) experienced a surge in trading volume this week as rising Treasury yields rattled the bond market. The ETF, heavily weighted towards 30-year Treasury bonds, has seen its price decline 14.8% year-to-date. Despite the selloff, TLT has attracted significant inflows, with $18 billion coming in so far this year. Yields on 30-year bonds reached their highest levels since July 2007, while the 10-year yield approached the 5% threshold, causing concern among investors. The rising yields have led to losses across the bond market, with TLT and other popular corporate-bond ETFs on track for their biggest weekly declines of the year. Treasurys are currently experiencing a historic bear market, with prices expected to fall for a third consecutive year in 2023.

via MarketWatch|

#bear-market #bond-market #finance

finance2 years ago•3 min saved

Retail Investors Learn Hard Lessons as VinFast Shares Plummet After Massive Rally

Retail investors in the US stock market are engaging in speculative trading, reminiscent of the GameStop and AMC frenzy, bidding up obscure stocks only to see them crash spectacularly. The latest example is VinFast Auto Ltd, an unprofitable electric-vehicle maker whose stock soared 504% in a four-week trading frenzy before plummeting roughly 80% in eight days. This trend suggests that the greater fool theory has become a prominent feature of the investing landscape, where investors seek dream-like possibilities and manipulate stocks in lock-step. The boom in risky bets on companies going public through blank check deals, with limited stock floats, has drawn retail investors to social media platforms to drive up interest. Despite the record losing streak, VinFast's market value remains high, but the stock's still-lofty valuation may have further to fall.

via Fortune|

#finance #greater-fool-theory #retail-investors

finance2 years ago•4 min saved

"VinFast's 504% Rally Exposes Traders' Greater Fool Theory"

VinFast Auto Ltd, an unprofitable electric-vehicle maker, experienced a four-week trading frenzy that saw its market value surpass that of McDonald's and General Motors before plummeting roughly 80% in eight days. This episode highlights the prominence of the greater fool theory in the US stock market, where investors bid up obscure stocks only to witness their spectacular crashes. Retail investors, arriving late to the trade, played the greater fool, fueling the boom and subsequent bust. The phenomenon mirrors risky bets on other companies that went public through blank check deals, with a small percentage of stock floats making them susceptible to manipulation. Despite the record losing streak, VinFast's market value remains high, indicating the persistence of speculative trading driven by free money and online platforms.

via Yahoo Finance|

#finance #greater-fool-theory #retail-investors