What just happened with GameStop? What can we learn from it, and how does it apply to your financial plan? We’ll get Don’s perspective on today’s show.
Click play to listen to the episode…
From watching the Super Bowl to politics to the coronavirus cases going down thanks to more people being vaccinated, a lot has happened already this month. Good news mixed in with bad news, it’s a lot to take in. On today’s podcast, we’ll talk about a story making all sorts of headlines when it comes to the stock market.
Have you been following the story surrounding GameStop stock? What happened and what lessons can we learn? GameStop stock went from $40 to over $350 dollars a share and now back down to $49 in the course of a couple weeks. Why did it go up and down so quickly?
Don shares what a short sell is and why GameStop and a few other companies got caught up in all of this. Hedge funds bet on the stocks going down. How do you make money on a stock going down? But what happened instead? How did places like Reddit and Robinhood come into play and cause some disruption?
Who gets hurt in this situation? How do you know when you’re getting greedy or fearful when it comes to the stock market? You also want to consider the difference between investment and dumb luck. You don’t want to fall into the trap of thinking you’ll get rich quick. Gambling is not the same as investing. You never want to risk more than you can afford to lose. Instead, you’ll want to put in hard work and discipline, and focus on not spending more than you make.
Listen to the entire episode or click on the timestamps below to skip ahead to a particular segment.
[1:06] – Don’s theory when it comes to picking a team to cheer for in the Super Bowl.
[2:40] – What other drama has occurred in February?
[3:48] – What good news has happened so far this year?
[6:49] – What’s been happening with GameStop?
[9:01] – What’s a short sell? What was different this time?
[13:31] – What’s long-term investing and what’s luck?
[15:25] – Why does this situation remind Don of a TV show?
[17:26] – Don’t get greedy!
[18:16] – Did any of Don’s clients consider buying GameStop stock?
[19:43] – How do you build wealth?
[21:07] – What age did Don love being?
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Donald W. Cash – CPA, CFP® is an independent advisor. Don began his career in 1985 as an accountant after graduating Rutgers University. In 1990 he entered the field of Estate Planning with a concentration in long term care planning. Don has been advising clients in the baby boomer and retirement market for 20 years. He has helped over 1,000 families with their planning needs. He advocates a holistic approach to Estate and Financial Planning as has relationships with other professionals including Attorneys, CPA’s, Mortgage Specialists, Insurance Specialists and Asset Managers. Don is married to Cathy and have 4 children, Carly, DJ, Nick and Tori. They live in Freehold, NJ.