This is the third installment in an ongoing series where Marc Bautis, Wealth Manager and Founder of Bautis Financial, comments on hot topics in the financial industry. Marc is joined by Kayla Waller, Bautis Financial’s new Paraplanner.
What Do Celebrity Boxing and Meme Stocks Have In Common?
You can call meme stocks and Reddit boards legalized market manipulation. Floyd Mayweather called last week’s boxing exhibition legalized bank robbery. What do both have in common? It’s the fear of missing out (FOMO).
On the Labor Front
We’ve never had more job openings in the United States than we do now. According to the popular job search site Indeed.com. there are almost 1 million job openings, which just about matches the 9.8 million Americans that are currently listed as unemployed.
Chipotle was praised last month for increasing their wages, with the new average wage being $15/hour. This week, they announced that to account for the increase in wages, they will be raising menu prices by 4%. This reminds me of my college corporate finance class, when the professor stated that the major stakeholder a public company is accountable to is it’s shareholders.
Bitcoin Fails the Anonymous Test
Last month, I brought up how Bitcoin has failed the inflation challenge so far. Bitcoin is thought to be a great hedge against inflation — however, in the wake of increased inflation projections over the past couple of months, Bitcoin’s price has crumbled.
Inflation may not be the only test that Bitcoin is failing. Bitcoin was originally thought to be a way of protecting your privacy — a way to have anonymity with what you do with your money. Good news, it looks like the FBI was able to recover a large chunk of the ransom paid out to the ransomware hackers of the Colonial pipeline. Bad news: Bitcoin may not be as anonymous as people thought it was..
Meme Stock of the Week: Clover Health Investments Corp (CLOV)
Commentary by Kayla Waller.
Social media and online forums such as Reddit’s WallStreetBets new favorite meme stock is Clover Health Investments Corp. Reddit users had previously sent AMC Entertainment and GameStop share prices soaring.
Clover Health is a medicare-backed insurance seller that provides Medicare Advantage plans to seniors. Back in February of this year, the price tumbled after a report from Hindenburg Research claimed that the company was under investigation by the Department of Justice, which they did not disclose to investors. On Tuesday, the price of CLOV rose 86%.
Earlier this week, the Securities and Exchange Commission stated that they are examining markets for signs of manipulation. It will be interesting to follow these developments as meme stocks continue to surge.