Is The GameStop Trade Illegal? Chances of a Dollar Total Crash, and a Strong 1-Trillion-Dollar Force Driving Markets Higher
The GameStop-frenzy of last week won’t terminate well for all small investors. Shorting and long buy both are legal only if they aren’t manipulative. The dollar may weaken, but the total collapse seems unlikely. Stock Dividends and Buybacks in the US May Drive Markets Even Higher This Year. Why did I bought Litecoin?
We live in exciting times in the markets, cryptos are skyrocketing, commodities surging, many stock indices stay near all-time highs. The huge money printing of central banks may raise most prices, cause some sort of “all-asset bubble”. The breaking news about the GameStop price explosion and the fight between “Robinhood-traders” and “Wall Street Whales” also encourages new investors to buy stocks or cryptocurrencies.
Inflation fears also strengthen demand for cryptos, precious metals, stocks, real estate. Some people think the dollar may collapse totally, but they forget central banks may also “taper.” Retire a part of the money from circulation. So, inflation may be higher in the short and middle term, but the total collapse of the dollar and other diluted currencies can be avoided. Anyway, preparing for inflation and staying invested in real-assets seems to be a good idea this year.
This is my post recommendation for you with a few new publications on my financial web page, Ageless Finance. Shorter and longer, comprehensive articles about investing themes. With many charts and lists. If you are interested in more details, click on the images.
Oh, No, Is GameStop Short Selling or Buying a Sin?
Small investors trying to “squeeze” GameStop short-selling institutional investors was the most interesting story of the last week. Is sort selling something weird, sinful, illegal, or strange? Only sometimes.
- Short selling itself is normal, the same as long buying.
- The “let’s blame the short sellers” game is ancient.
- Are short-sellers the bad guys? Or long buyers?
- Only if they are manipulative.
(Opinion)
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Is This the End of the Dollar? Will Fiat Currencies Collapse?
The US dollar will collapse. Fiat currencies are ending rapidly. The Biden–Yellen team will lead to a debt explosion. Only real assets, physical investments, gold, real estate, cryptocurrencies, may survive–can you read in many posts.
- Many authors fear the total collapse of fiat currencies or the end of the dollar.
- They forget that central banks can not only print money but retire it from circulation, too.
- Higher inflation of the dollar and other main currencies is very likely, but a collapse is not.
- But investing in real assets is also a good choice if you aren’t expecting the end of paper money.
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9 Reasons I Invested in the Digital Silver, Litecoin
Why is the digital silver, one of the oldest cryptocurrencies, Litecoin attractive? Some reasons:
- Its transaction system is faster than Bitcoin’s.
- The transactions are much cheaper.
- Litecoin is supported by all crypto-exchanges and many ATMs.
- In the last years, it got much cheaper compared to Bitcoin.
- Litecoin is part of many crypto-indices, funds, and mixed portfolios.
- Modern mobile trading and saving apps are also supporting it.
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Stock Dividends and Buybacks–a Strong 1-Trillion-Dollar Force Driving Markets Higher
Despite the incredible economic crisis in 2020, the dividend payments and share buybacks on the American stock market stayed on high levels.
- Stock dividends rose slightly and buybacks fell 30 percent in 2020.
- This year, both may rise again.
- Means over 1 trillion dollar payout for investors, a yield of 3.1 percent p. a.
- As interest rates remain low, this may drive stock prices further.
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That why is important to expose yourself to assets that have a chance to keep some value while maybe the dollar collapse.
Thank you.
As per my thinking it's legal and illegal also one party is dumping huge stocks and other are supporting it , so it's kind of mixed theory for me.
Selling or buying, itself, is not illegal. (Regardless of quantity.) Doing it with the purpose to manipulate prices, it is.
Dear @deathcross
As usual: interesting choice of topic. It's hard not to agree with you, that we're living in exciting times (Very positive way to describe current challenging times, isn't it? :)
Question is: how long can it be avoided? I studied little bit history of FIAT currencies and it's obvious to me, that there is not one FIAT currency which would survive in a long term. There has been hundreds FIAT currencies in the past, and pretty much ALL came to bitter end.
I don't see a reason to believe, that USD would be any different. Especially since trust towards this currency (especially as a reserve currency) is diminishing. And competition will be only growing (with Chinese YUAN leading that competition).
Perhaps USD won't crash and burn within upcoming few years, however I strongly believe that it will go through that process within our lifetime. At least within mine (I'm planning to live long and happy life :P)
ps. check out my recent post about crypto in Nigeria (you may find it interesting)
Enjoy your weekend :)
Yours, Piotr
200 years seems to be enough proof for now (USD). But not only dollar survived in a long term, also the Swiss Franc (since 1850) and the Swedish krona (since 1874), some others.
It depends also on the decision of governments and central banks if a currency survives. Hyper-inflation is very unpopular, so, I suppose, in developed democracies, won't happen.
The frugal Germans, for example, are almost paranoid about inflation.
Most disappeared fiat currencies died in dictatorships, wars, or "populist regimes". (Soft dictatorships.) I think the world is also evolving in the sense that very unpopular measures are being taken less and less in modern democracies.
sorry for such a late reply @deathcross
true. there are some exceptions. Most of them however survived that long because country has been in power to "expore" inflation to other countries.
If ww2 wouldn't happen, then USD would never become world reserve currency and would probably be dead by now.
Cheers, Piotr