GameStop shorts a 'small drop in the bucket' of wider economy
Meme stocks are experiencing a boost following the online return of "Roaring Kitty," best known for the GameStop (GME) short squeeze of 2021. Newton Investment Management Chief Investment Officer and Head of Equity John Porter joins Catalysts to break down what the meme stock rally could mean for the market (^DJI, ^GSPC, ^IXIC). Newton reflects on the 2020-2021 meme stock rally, explaining that "there was an undercurrent of liquidity there that was an important catalyst for what was going on." He adds that the surge over the last day may be a similar case, but only time will tell. However, Newton warns, "As a fundamental, long-term investor, I'm certainly cognizant of any short-term volatility and trying to understand if there's a turning point in the market that I need to have a better grip on." He says that the Fed is likely watching the meme stock rally, but in the greater context of the economy, "the losses that shorts had in GameStop and so forth over the last 24 hours, those are a small drop in the bucket in this massive ocean of our economy." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Melanie RIehl
