The Daily Valet. - 1/28/21, Thursday
✔️ Beating Wall Street at Its Own Game
Thursday, January 28th Edition
Anyone got some good stock tips?
Cory Ohlendorf , Editor ⋯ @coryohlendorf
Today’s Big Story
Beating Wall Street at Its Own Game
Internet-fueled amateurs, on platforms like Reddit and Discord, have pushed stocks into the stratosphere, and crippled short sellers
Buckle up, because this is a wild ride. Last week, a bunch of Reddit users decided to play the market and push up the value of shares for video game retailer GameStop—to nearly three times its average. It worked so well, that they’ve upended Wall Street, creating a drama filled with memes and weird internet lingo as big-time investors stand to lose billions of dollars.
How? According to the Wall Street Journal, the newbie investors are gathering on such platforms as Reddit, Discord, Facebook and Twitter. They’re encouraging each other to pile into stocks at low prices and hold it, forcing something known as a “short squeeze” that is driving the price up and is emptying hedge funds in the process.
As a result, GameStop stock jumped more than 822%, from $17.25 per share at the beginning of the year to a high of $159.18 on Monday. Then it dropped by nearly half, only to rise back up to $147.98 on Tuesday. And then Elon Musk tweeted about it to his 43 million followers, and the price jumped 40% in after-hours trading. On Wednesday, it closed at $347.51 per share, before dropping again in after-hours trading.
“We’re in a war,” one Redditor posted Wednesday. “A war for the redistribution of wealth.” In practice, this means we are seeing one of the largest wealth transfers from the financial ruling class to the middle and middle-upper classes in recent memory. Which is why it’s understandably what so many people are talking about.
Of course, to understand what’s happening here, you have to understand “short selling,” where investors make a bet that a stock will go down instead of up. To do this, they borrow a share of the stock (for a fee), immediately sell it to pocket the current value, and agree to buy another share later to “cover” their short position. But shorting stocks comes with huge risks if the stock price goes up.
Part of what's driven this behavior is the popularity of retail investing. Stock trading apps, often with no fees, have made it easy for people to jump into the market. But big name trading apps like Robinhood and ETrade have struggled to remain online and on Wednesday, TD Ameritrade restricted the sudden spikes in demand, “out of an abundance of caution amid unprecedented market conditions.” Nasdaq said it will halt trading on a stock if it finds a link to unusual activity on social media.
↦ What's Next: Shares of movie-theater chain AMC and retailer Bed Bath & Beyond have been boosted. Struggling fashion brands could be next. What's Gap selling for these days?
The Atlantic Ocean Is Getting Bigger
And scientists now believe they know why ...
The largest ocean on Earth is the Pacific. For now. Currently, the Atlantic is gaining ground—or sea—as it expands by about four centimeters each year.
According to Vice, a research team dropped 39 seismometers to the bottom of the ocean off the western tip of Africa, to listen for the rumblings of earthquakes along an underwater mountain range formed by a continental plate boundary.
A year later, they've found a hidden story of how the continents are growing farther apart—not pulled from either side by subduction zones, as previously believed, but perhaps being pushed apart by magma bulging up at the center of the ocean.
It turns out that the Earth's mantle beneath the Atlantic is a hotbed of seismic activity, according to the team's research, published Wednesday in the journal Nature. Magma is pushing upward and outward like gigantic underwater pimples, though if you want a more appetizing example, Gizmodo likened it to the process of pushing pizza dough out from the center.
Do You Really Need Two Masks Now?
Everyone seems to be talking about double-masking
Oh boy. Just when it seems like most rational people have come around to the idea that wearing a mask is an easy, practical way to help keep people safe from the coronavirus, a new question emerges: Is one mask enough? Are two actually better? The answer to these questions are predictably complicated. Here is our best shot at sorting it out.
Although the Centers for Disease Control has not recommended double masking yet, White House advisor Dr. Anthony Fauci says it “makes common sense that it likely would be more effective.” Especially with new, more contagious variants of COVID-19 popping up in more places.
“The more layers, the more barriers you can put between yourself and the virus, the better off you're going to be,” epidemiologist Thomas Duszynski tells HuffPost. The two properties of a mask you want to look for are the filtering capacity and the breathability, he says. You want masks that can both filter the air we breathe in and limit how many respiratory secretions we shoot out.
Now, perhaps the prospect of wearing two masks is daunting, which is understandable. Joseph Allen, a Harvard professor of exposure assessment science, told the Boston Globe that he would recommend double-masking if you're going to the grocery store, if you're an essential worker or anytime you are “in a high-risk area.” Which, of course, is pretty much everywhere, right?
↦ FYI: Here's why scientists are very worried about the coronavirus variant from Brazil.
Will This Replace the Army’s Black Hawk?
The modern helicopter improves speed, range and survivability
I don't know what it is, but I love helicopters. As a kid, there were few things cooler than the U.S. Army's Black Hawk. And while the UH-60 has been a reliable workhorse and regularly updated with new tech, it's been in service since the early '80s.
Sikorsky and Boeing have teamed up to create its replacement. Billed as the fastest, most maneuverable, most survivable assault helicopter in history, the Defiant X will be able to fly lower, farther and faster than its predecessor, reports Uncrate.
Of course, the most eye-catching feature is at the top, where two stacked rotors spin in opposite directions for maximum lift. According to Popular Science, this coaxial setup means that the Defiant X doesn't need a traditional tail rotor—which exists to keep a regular helicopter from spinning around in dizzying circles in response to the motion of that top rotor.
Popular Mechanics says this beast of a chopper will provide Army air assault forces an unparalleled battlefield mobility.
↦ Meanwhile: The Department of Homeland Security issued a warning Wednesday of 'heightened threats' from domestic violent extremists.
In Other News
Other Things We’re Talking About Today
+
Work Out In the Morning
Time to embrace first-thing-in-the-AM sessions
You know that feeling when you spring out of bed, energized and eager to greet the day? I don't. I'm naturally a night owl and have never been much of a morning person. But strangely, I've adapted really well to early morning workouts.
Because the alternative is dragging myself out of bed and trying to get my day started through a haze of grogginess—I don't like the morning, so it's easy to let time get away from me. Suddenly, it's lunch and I haven't accomplished much because I'm “still waking up.”
A morning workout isn't always pleasant, but I barely notice because I'm still dazed as I pull on my shorts and sneakers. But a few jumping jacks into my warm up and my heart is pumping. The music begins perking me up and then it hits me that I'm doing it—I'm getting in my workout before the day starts. That means that after my shower, I've already accomplished an important task.
Of course, the best time to exercise is the time that works best for you. Everyone is different so the “right” time depends entirely on your lifestyle and personal preferences. But according to the experts, there's a case to be made for first-thing-in-the-AM sessions.
↦ Read: Why a sweaty start makes for better days.
Weekend Shopping Plans
From winter jackets to retro sneakers, our picks from three can’t-miss sales going on this weekend.
An extra 40% off sale items w/code SALE40
Workwear snap-button shirt jacket$188 / $83.49
Up to 40% off new winter markdowns
Leather Killshot 2$90 / $61.97
Up to 60% off winter styles
Hybrid down parka$129 / $59.90
Special Promotion
You Can’T Go Wrong With Ethical Diamonds
Whether it’s for Valentine’s Day or any other special occasion, Couple’s diamond eternity band is a timeless option that suits everyone’s style. Each ring is handcrafted in New York, and made with ethically sourced, lab grown diamonds, that are atomically identical to mined diamonds, and 35% larger for your money. Shop the iconic round eternity band or customize your band's diamond shape or width for free with the help of their knowledgable diamond concierge. Plus, Valet. readers get 10% off your first purchase with code VALETMAG10
↦ Get It $1,499 / $1,349 w/code VALET10 at Couple
Morning Motto
Be bold.
↦ Follow: @oliversapparel
That’s all for today...
Valet Media LLC535 S. Curson Ave. #8GLos Angeles, CA 90036[email protected]