Are Investing Fundamentals Dead?
(Not necessarily, but things are rapidly changing.)
February 2, 2021
The activity taking place in the traditional markets over the past several weeks has played out
more like a Hollywood movie than reality. The Wall Street Bets (WSB) Reddit board prompted
minimally experienced retail investors to collectively squeeze out hedge funds shorting
GameStop (GME) stock, among others. Manipulation or not, it was an interesting sight to
behold. All experienced investors were pretty much on the same page as relates to the
endgame here. GME would come crashing down sooner than later, and in doing so would crush
those retail investors without an exit strategy and hoping to hitch a ride to the moon. At the
time of writing, GME stock had briefly dipped below $75.00 today, from a high last week of just
under $400.00. If your investing strategy hinges largely upon the collective actions of millions of
other inexperienced investors, chances are it’s not going to work out well.

So where does this leave traditional investors across all markets, when a specific stock or asset
can easily be pumped to the moon in a coordinated effort over just a few days? And how long
until this behavior finds its way into other industries? The cryptocurrency market got a taste
over the past few days with Doge Coin. There is talk of a “silver squeeze and “Bitcoin squeeze”
right now. The price of silver is down although, Bitcoin is pumping and sits at just under $36K at
the time of writing. The word on the street is that some bigger players plan to short Bitcoin
over the coming weeks which, all coordinated efforts aside, doesn’t seem like a real good move
considering that the MicroStrategy World Summit kicks off on Wednesday, February 3rd. Cloud
Fire Capital will be in attendance at the virtual event, and there are some massive names
already enrolled. It’s unlikely that we will see immediate mass institutional adoption following
the summit but, the seeds will have been planted. And given all that our space has going for it
right now, do the shorts really think it’s wise to throw their lot in with the likes of Scott Minerd
(Guggenheim), whose most recent series of tweets advised that Bitcoin’s price cannot sustain
above $30K and that the price would be imminently headed back down towards $20K…. Enough

Market manipulation and nonsense aside, the atmosphere from within the Bitcoin space seems
and feels extremely bullish. More and more experienced Bitcoin investors appear to be coming
to terms with the reality that moderate pull-backs are a good thing, and simply allow for some
cheap basement bargain shopping, while HODLing onto one’s current portfolio for dear life.
Retail and newer institutional investors are only going to pay attention to the boys who
incessantly cry “wolf” for so long, before starting to ignore them altogether. It seems that we
may be reaching a tipping point, and that’s a good thing. Tremendous support is being
encountered and further established between $29.7K and $30.5K. Bitcoin has consolidated in
this range, seemingly in preparation for February’s activities. These are the times to reap the
rewards of being a “true believer.”

So what of investing fundamentals, and what now? Anyone who is not keeping a keen eye on
macro-economic sentiment across all industries may put themselves in a regrettable position.
Growing belief that we may be in an “everything bubble” is being overshadowed by excessively
bold fiscal and monetary policy, seemingly not slowing down anytime soon. With additional
$1,400 stimulus checks on the horizon, the cryptocurrency market as a whole may be in for an
even bigger pump in the coming weeks. It would behoove all investors to proceed with caution
and take note of what the newer, younger more aggressive investors are pursuing. Growing
distrust and distaste for traditional markets and exchanges might just reward those who have
been patiently procuring, accumulating and protecting their alternative investment portfolio(s).
Follow the stimuli?