GameStop Investors Still Await Riches From Epic Short Squeeze – WSJ

Greetings everyone. It has been quite some time since my last post. This article was brought to my attention by a former student. It reminds me of readings on cognitive dissonance (HTML), the frog-in-pan theory (HTML), and epistemic trespassing (HTML). In short, some folks double-down on their wrong views (cognitive dissonance), hold on to their losing position as losses mount (frog-in-pan theory), and all the while speak outside their expertise as if they were an expert (epistemic trespassing).

May you find those three links and this Wall Street Journal article interesting…

-Dr. Moore

2 thoughts on “GameStop Investors Still Await Riches From Epic Short Squeeze – WSJ

  1. Hi professor,

    You always seemed like a guy who wouldn’t back down from a challenge and so I challenge you. I challenge you to do a very difficult thing, argue for the side you think is wrong. Prove the “redditors” are right for putting their money where there mouth is and “investing” in “meme stocks” specifically GameStop and AMC. Prove that the “Short Squeeze” has NOT yet happened but it is bound to happen unless it is somehow prevented through fraudulent activities.

    On a side note, I’ve invested a little over $20k into GameStop + AMC, and made about $4k profits. I’ve sold all of my positions in AMC and locked in to GameStop. I am by no means an expert in the stock market or any particular stock including GameStop.

    Superstonk is probably one of the few remaining good quality sources of information, but if you look back 6+ months ago you’ll find good posts in other Reddit pages.


    > >

    • I do not know your name but I think you are a student from years past that educated me on -ian vs. -yan. Regardless, it is good to hear from you.

      Neither I, my training, my experience, nor the facts support making the argument you wish me to make. Your challenge is akin to “Prove that Hillary Clinton DOES lead a child trafficking ring and that Trump is the true winner of the 2020 election.” As such, I decline both challenges.

      Regarding your returns, I challenge you to accurately account for and report your returns in the context of the “Nine ingredients of valid performance measurement” enumerated in my latest publication:

      For instance, what time frame? Did you include transactions costs, trading costs, and short term gains taxes? How about volatility? Could you have earned more on a risk-adjusted basis using a simple S&P500 index fund (or 2X or 3X as needed to match the volatility you had with AMC/GME)? In order to have valid performance measurements, more factors must be considered, communicated, and supported by evidence.

      Of course, you are free to decline that challenge as I have declined your challenge. That is your privilege.

      Nevertheless, I hereby end this back-and-forth now before it starts. If you see me out and and about we can have a conversation. But this WordPress site is not a reddit forum.

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