Rally

Bitcoin ETF

GameStop

Spot

Vanguard CIO Gregory Davis has cautioned against excessively risky bets associated with GameStop. As a top executive for one of the largest asset managers in the world, Davis noted that he has “seen this movie already.”
<h2 id="strong-gamestop-rally-has-an-end-strong">GameStop Rally Has an End</h2>
According to the Vanguard Executive, the GameStop movie will play out with the stock hitting an 18-month high based on activity on Reddit. However, he predicted the rally will not last long.
“Back in 2021, there were plenty of headlines of young or novice speculators who were swept up in meme stock frenzy,” Davis said in a post on LinkedIn, adding that, “We heard about the winners – the few individuals who got rich quick with their extremely risky bets and extreme luck. But most walked away worse-off, left to face the inevitable and stark reality of day trading.”
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Vanguard CIO weighs on GameStop Part II: "seen this movie before".. "risky bets".. "most walked away worse off".. "don't confuse speculating with investing" etc <a href="https://t.co/uVMdjo44Le" rel="noopener noreferrer nofollow">pic.twitter.com/uVMdjo44Le</a>
 — Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1790464850621042706?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 14, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Drawing on this position, Davis noted that it is critical not to confuse “speculating with investing.” These counsel is resounding noting the trend with <a href="https://coingape.com/news/stocks/gamestop-gme-share-soars-51-amc-theatres-by-21-in-2021-style-revival/" target="_blank" rel="noopener noreferrer nofollow">GameStop</a>. As an heavily shorted asset, GME is generally caught in the cross-hairs of influencers like Keith Gill (aka Roaring Kitty).
With no major fundamental, posts or social rallying spooks retail investors to go all out to bet on the stock. The latest frenzy resume after Roaring Kitty returned to the limelight after about 3 years in hibernation. With his return, the price of GameStop soared by more than 60% to an 18-month high of $64.83.
After the close of trading on Tuesday, GME jumped 204.50% with an additional 10% in After Hours market. To Davis, the irrational pricing might prove tempting to investors. However, he said nothing has changed about GameStop as its earnings remains the same. Ultimately, he predicted that the ongoing rally will be short-term.
<h2 id="strong-vanguard-against-spot-bitcoin-etf-strong">Vanguard Against Spot Bitcoin ETF</h2>
Despite holding over $7.7 trillion in Assets Under Management (AUM), Vanguard has refused to join the <a href="https://coingape.com/spot-bitcoin-etf-vanguard-ceo-says-firm-wont-change-its-stance/" target="_blank" rel="noopener noreferrer nofollow">spot Bitcoin ETF</a> ecosystem. While it has been called out on several occasions, market leaders and the company’s CEO Tim Buckley has <a href="https://coingape.com/bitcoin-etf-jim-bianco-defends-vanguards-ceo-from-critics/" target="_blank" rel="noopener noreferrer nofollow">defended the firms position</a>. Though his exit is slated for later this year, the firm remain resolved not to onboard Bitcoin ETFs.
With spot Bitcoin ETFs thriving per the cross-market embrace of the asset, Vanguard is also not missing out. The firm’s bets remains profitable in other key areas it places its capital in.
Read More: <a href="https://coingape.com/google-launches-gemini-1-5-flash-updates-api-and-gemma-line/" target="_blank" rel="noopener noreferrer nofollow">AI News: Google Launches Gemini 1.5 Flash, Updates API and Gemma Line</a>
The post <a href="https://coingape.com/vanguard-cio-issues-important-warning-on-speculative-gamestop-bets/" rel="noopener noreferrer nofollow">Vanguard CIO Issues Important Warning On Speculative GameStop Bets</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Vanguard CIO Issues Important Warning On Speculative GameStop Bets

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