American Shares Could Get Pricier Still
How do you know when it's time to exit the stock market? History gives us some clues. In 1929, an American businessman named Joseph Kennedy decided to get out when even a shoe-shine boy was giving stock tips. In 2000, the sign to leave came when many dotcom companies paid millions for Super Bowl ads.
A New 2024 Sell Signal?
In 2024, we might have our own signal: Keith Gill is back on social media. If you don't know him, Mr. Gill was key in the meme-stock frenzy of 2021. He encouraged everyday people to buy shares in GameStop, a struggling video-game store. After three years, he's posting again and seems to own a big stake in the company worth hundreds of millions.
GameStop's Stock Surge
Since Mr. Gill’s return, GameStop's share price has been on a wild ride, going up more than 40%. The company, which was having a tough time, took advantage of this buzz and sold about $3 billion in new shares. For those looking at the stock market carefully, this might be a sign of speculative excess.
What This Means for You
As a housewife or an everyday person, it’s important to know that just because stocks are going up doesn't always mean it’s safe. Sometimes, it can be a sign that the market is overheating and might fall. It's like when everyone starts talking about something that's usually a sign it could change.
In summary, Keith Gill's return and GameStop's stock surge might be telling us that some parts of the stock market are getting too risky. If history is any guide, this could be a good time to reassess your investments and perhaps think about safer options.
