In the old days, we called it a “pump and dump.”
They were low-priced stocks with lousy fundamentals. They often traded for pennies, if they even traded.
They sat at low prices for months. Then, suddenly, the price jumped. Just as quickly, the price fell.
The pump was easy to find. It was a bullish story.
Maybe about a mining company about to find gold. Or the rumor of a big deal for a tech company.
Stock promoters or scam artists wrote the stories. They bought the stock, then pumped the price with their story. Finally, they dumped the stock.
Pump and dump works because the “greater fool theory” of investing works.
Looking at these stocks, you could say the buyers were fools for believing the story. But the buyers believed they were rational.
They planned to sell at a profit when other investors heard the news. In other words, if they were fools, they expected to sell to greater fools.
This strategy is foolish … but sometimes profitable with the right game plan.
But there are too many fools in the market right now.
And that means things could end badly very soon.
Fools Flocked to Hertz’s Bankruptcy
We saw the greater fool theory in action last week in shares of Hertz Global Holdings Inc. (NYSE: HTZ).
The stock price soared even as the company was in bankruptcy:
Speculative Traders Bought up Shares of HTZ
After bankruptcy, shares will probably be worthless. That’s why the company’s largest investor, Carl Icahn, sold his shares.
Icahn is a takeover specialist. He’s an expert in bankruptcy. Yet, after he sold, the stock soared.
The only explanation is the greater fool theory.
Day traders, many of them using the Robinhood app, were buying the stock. They planned to sell quickly to other day traders.
In other words, buyers of HTZ expected a greater fool to give them a profit.
Every Bubble Is Fueled by Fools
The Economist John Maynard Keynes explained how this kind of market works. He compared it to the card game Old Maid.
In Old Maid, every card except one can be matched. The goal is to discard cards that are matched to their pair.
Eventually, just one player is holding a card — the Old Maid — and they lose the game.
He didn’t call this the “greater fool theory of markets.” But that term came into popular use for some reason.
The reason is probably because it’s an accurate way to describe some markets.
Greater fools fueled internet stocks in 1999.
Everyone knew these stocks were overvalued. So, they invented the price-to-eyeballs ratio to replace the price-to-earnings ratio that was no longer relevant.
The stock market surged before crashing more than 76%.
When that bubble burst, investors sought safety in real estate. They began buying homes, and then flipped homes.
Banks gave mortgages for more than the value of the home because everyone knew home prices always go up. Anyone could profit by selling to a greater fool.
Home prices spiked before plummeting more than 33% by 2009.
The problem with markets trading under the greater fool theory is that we eventually run out of fools.
My colleague Ted Bauman recently summarized the evidence that the stock market succumbed to the greater fool theory. You can watch his presentation here.
Your No. 1 Strategy for a Foolish Market
It’s Ok to trade in a market like this if you understand the game will end.
Short-term trading with options could be the best strategy under the greater fool theory. That way your gains can be large while your risks are limited.
For more on short-term options trading, check out this new presentation about my unique strategy.
Regards,
Michael Carr, CMT, CFTe
Editor, Peak Velocity Trader
I simply could not depart your web site prior to suggesting that I actually enjoyed the standard info a person provide on your guests? Is going to be back incessantly in order to check out new posts
https://buysildenshop.com/ – viagra ordering
Propecia E Inseminacion Artificial
https://buytadalafshop.com/ – is cialis generic
https://buypropeciaon.com/ – will propecia work on hairline
cialis dolor de piernas
Foro Cialis Online
ivermectin dosage for dogs
buy cialis online with a prescription
cialis vs viagra comparison
Comprar Cialis Bilbao
propecia costco
Generica Cialis
http://buypriligyhop.com/ – buy priligy usa
http://buylasixshop.com/ – Lasix
https://buyplaquenilcv.com/ – hydroxychloroquine purchase online
[url=http://ivermectintbs.com/]purchase stromectol[/url]
https://buyzithromaxinf.com/ – order zithromax online
[url=https://cialisxforce.com/]cialis black[/url]
Plaquenil
[url=https://tadalafilgenericpill.com/]tadalafil paypal[/url]
Cheap Generic Bentyl Need In Internet
Cephalexin 250 Mg Price
buy moduretic
Zithromax
Propecia Dosage Hair Loss Androgenetic Alopecia
http://prednisonebuyon.com/ – Prednisone
neurontin 100 mg
prednisone and tylenol
I genuinely treasure your piece of work, Great post.
https://limamenitnews.com/2019/12/03/temu-pamit-kapolres-metro-akbp-retno-prihawati-perkenalkan-diri/
http://www.amandadumouchellephotographyblog.com/yuki-jojo-beach-family-photos-amanda-dumouchelle-photography/
Merely wanna input on few general things, The website pattern is perfect, the content is very good. “The reason there are two senators for each state is so that one can be the designated driver.” by Jay Leno.
}
Woah! I’m really digging the template/theme of this blog. It’s simple, yet effective. A lot of times it’s very difficult to get that “perfect balance” between user friendliness and visual appearance. I must say that you’ve done a fantastic job with this. Also, the blog loads extremely quick for me on Opera. Exceptional Blog!|
I’m gone to say to my little brother, that he should also visit this website on regular basis to get updated from most up-to-date reports.|
Hi this is somewhat of off topic but I was wanting to know if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding experience so I wanted to get advice from someone with experience. Any help would be enormously appreciated!|
138780 393903Also, weblog frequently and with intriguing material to keep individuals interested in coming back and checking for updates. 200981
Can Keflex Cause Thrush
Itch Reaction To Amoxicillin
Buy Valtrex Online No Prescription
I was suggested this web site through my cousin. I am no longer certain whether this publish is written by way of him as nobody else recognize such special approximately my trouble. You’re incredible! Thank you!|
cialis 5 mg best price usa
Cialis A Marseille
Propecia Rogaine Dosage
cialis reviews
ivermectin for chickens
Acheter Viagra En Espagne
Temovate
quality viagra
viagra for sale in england
404138 245864The book is wonderful, but this review is not exactly spot-on. Being a Superhero is more about selecting foods that heal your body, not just eating meat/dairy-free. Processed foods like those mentioned in this review arent what Alicia is trying to promote. In case you arent open to sea vegetables (and yes, Im talking sea weed), just stop at vegan. 789565
Propecia
Singapore Online Store Drug
Lasix
can i buy priligy over the counter
Discount Levaquin Sinusitis Buy Now On Line Without Dr Approval
sister video games sex https://cybersexgames.net/
Levitra Dosierung Erfahrung
xvideos sex games
[url=”https://sexgamesx.net/?”]threesome sex games[/url]
swinger sex games
raging bull online casino https://casinoonlinek.com/
wife sex party games
[url=”https://sexygamess.com/?”]sex games no flash[/url]
lol sex games
nj casino online https://onlinecasinoad.com/
dangerous sex games
[url=”https://winsexgames.com/?”]adult sex games for couples[/url]
sex games to spice up relationship
was bedeutetwaygern online casino https://casinogamesmachines.com/
no min deposit online casino https://conline-casinos-hub.com/
couples plays strip poker and sex games
[url=”https://sex4games.com/?”]adult sex games android[/url]
virtule sex games
786223 433575I recognize there is a great deal of spam on this internet site. Do you need to have aid cleaning them up? I could support in between courses! 364094
best online casino bonuses https://online2casino.com/
live online casino pa https://casinosonlinex.com/
outdoor sex fun and porn games
[url=”https://sexgameszone.com/?”]impregnation sex games[/url]
text based sex games
keto pasta noodles https://ketogenicdiets.net/
keto coffee recipe https://ketogendiet.net/
It’s a pity you don’t have a donate button! I’d without a doubt donate to this brilliant blog! I guess for now i’ll settle for bookmarking and adding your RSS feed to my Google account. I look forward to fresh updates and will talk about this website with my Facebook group. Talk soon!|
japanses sex ed, games uncenored
[url=”https://sexygamess.com/?”]sex games rape[/url]
2b sex games
what is keto https://ketogenicdietinfo.com/
write an argumentative essay https://anenglishessay.com/
write a essay about yourself
[url=”https://buy1essay.com/?”]when writing an essay[/url]
writing essay online
i need help writing an essay https://howtowriteessaytips.com/
my essay writing
[url=”https://student-essay.com/?”]writing experience essay[/url]
help writing essays
gay herpes dating https://gayprideusa.com/
gay dating sites https://gaysugardaddydatingsites.com/
Do you have any video of that? I’d want to find out some additional information.|
Amazing issues here. I’m very glad to see your post. Thank you a lot and I am taking a look forward to touch you. Will you kindly drop me a e-mail?|
persuasive writing essays
[url=”https://multiessay.com/?”]writing a biographical essay[/url]
pay someone to write my essay
what’s critical thinking https://criticalthinkingbasics.com/
critical thinking assessments https://criticalthinkinginstitute.com/
critical thinking nursing interview questions https://criticalthinking2020.net/
watson glaser critical thinking tests https://uncriticalthinking.com/
informative essay https://topvpndeals.net/
what is a personal essay https://thebestvpnpro.com/
community service essay https://vpn4home.com/
spongebob the essay https://vpnshroud.com/
writing a biography essay
[url=”https://casinoonlinet.com/?”]essay writing online[/url]
writing literary analysis essay
essay paraphraser https://vpnsrank.com/
Can I simply say what a relief to uncover a person that really knows what they are talking about on the internet. You actually know how to bring an issue to light and make it important. A lot more people need to read this and understand this side of your story. I was surprised you’re not more popular given that you most certainly possess the gift.|
Hey! I’m at work browsing your blog from my new iphone 3gs! Just wanted to say I love reading through your blog and look forward to all your posts! Keep up the excellent work!|
Wonderful blog! Do you have any hints for aspiring writers? I’m planning to start my own blog soon but I’m a little lost on everything. Would you advise starting with a free platform like WordPress or go for a paid option? There are so many options out there that I’m completely confused .. Any recommendations? Appreciate it!|
Hey there, You’ve done an excellent job. I’ll certainly digg it and personally suggest to my friends. I’m sure they’ll be benefited from this website.|
writing college essay
[url=”https://checkyouressay.com/?”]what an essay looks like[/url]
college essay
mcdonald’s history essay
[url=”https://essayprepworkshop.com/?”]writing a literature essay[/url]
write my essay 4 me
928674 767006Great internet site you got here! Please keep updating, I will def read far more. Itll be in my bookmarks so better update! 816688
sample suny college essay
[url=”https://dollaressays.com/?”]writing an expository essay[/url]
help with essay writing
3capuchin
roommate essay
[url=”https://essaytodo.com/?”]improving essay writing[/url]
what makes a hero essay
dating site for gay men over 50 https://gaysugardaddydatingsites.com
you’re really a good webmaster. The site loading speed is incredible. It seems that you are doing any unique trick. In addition, The contents are masterpiece. you’ve done a great job on this topic!
where to buy tadalafil on line tadalafil
what is tadalafil best price usa tadalafil
where to get tadalafil https://cialisvet.com/
tadalafil generic side effects for tadalafil
generic tadalafil from uk cialis without prescription
free chat network gay https://bjsgaychatroom.info/
gay dating site free https://gaypridee.com/
gay sex massachusetts chat https://gaytgpost.com/
rastaboy gay chat https://gay-buddies.com/
young gay dating https://speedgaydate.com/
https://cialistrxy.com/ tadalafil online with out prescription
x-vpn
[url=”https://addonsvpn.com”]vpn youtube free[/url]
vpn free download windows 10
cialis at canadian pharmacy cialis tadalafil
what’s a narrative essay
[url=”https://anenglishessay.com”]how to write an essay[/url]
essay genorator
free gay sex chat fcn
[url=”https://bjsgaychatroom.info”]gay+chat[/url]
gay men chat cam
cialis at canadian pharmacy cheapest tadalafil cost
best buy vpn
[url=”https://choosevpn.net”]best vpn for firestick 2022[/url]
free japan vpn
generic cialis tadalafil tadalafil online with out prescription
tadalafil order online no prescription cialis at canadian pharmacy
tadalafil without a doctor prescription best price usa tadalafil
347924 390640Its rare knowledgeable folks within this topic, nevertheless, you seem like theres more you are talking about! Thanks 136350
where to buy tadalafil on line cialis at canadian pharmacy
tadalafil price walmart what is tadalafil
cost of cialis tadalafil blood pressure
tadalafil tadalafil brands
generic cialis online fast shipping tadalafil dosage
cialis without a prescription tadalafil drug
where to order tadalafil tablets tadalafil order online no prescription
what is tadalafil tadalafil blood pressure
tadalafil order online no prescription cheap cialis pills for sale
free signup bonus no deposit casino
[url=”https://onlinecasinohero.com/”]online gambling for real money[/url]
best mobile casino
phone number dating gay
[url=”https://speedgaydate.com/”]fat chub gay dating[/url]
hunter biden gay boyfriend dating
tadalafil cost in canada https://cialisvet.com/
tadalafil liquid buy cialis
where to buy tadalafil on line buy tadalafil
https://cialistrxy.com/ what is tadalafil
tadalafil liquid generic cialis tadalafil
tadalafil daily online best price usa tadalafil
https://cialisbusd.com/ tadalafil online with out prescription
best price usa tadalafil where to buy cialis without prescription
canada generic tadalafil tadalafil online
https://cialiswbtc.com/ tadalafil generic where to buy
cialis without prescription https://cialisusdc.com/
generic cialis online fast shipping tadalafil cialis
https://cialisicp.com/ cialis tadalafil
tadalafil side effects cialis at canadian pharmacy
639270 671942Hi, you used to write outstanding articles, but the last several posts have been kinda boring I miss your tremendous posts. Past couple of posts are just slightly out of track! 226213
tadalafil dosage where to order tadalafil tablets
prescription tadalafil online prescription tadalafil online
where to order tadalafil tablets tadalafil cost walmart
sildenafil 20 mg how many should i take define sildenafil citrate
tadalafil cost in canada https://cialisicp.com/
tadalafil price walmart cheapest tadalafil cost
buy sildenafil 100mg online how long for sildenafil to work
Excellent blog right here! Also your site loads up very fast! What web host are you using? Can I am getting your affiliate hyperlink to your host? I want my website loaded up as fast as yours lol
tadalafil generico farmacias del ahorro indian brand names of tadalafil argentina
362759 767039Glad to be 1 of several visitants on this incredible internet internet site : D. 932788
cialis tadalafil generic tadalafil for women
can you buy stromectol over the counter stromectol how much it cost
where can i buy stromectol ivermectin 1
generic tadalafil from uk prescription tadalafil online
where to order tadalafil tablets tadalafil generic
ivermectin price comparison ivermectin cream 1%
ivermectin india buy ivermectin
ivermectin pills canada ivermectin nz
ivermectin human ivermectin 50
ivermectin 6 tablet ivermectin 400 mg brands
stromectol 15 mg stromectol without prescription
cost of ivermectin pill purchase ivermectin
ivermectin 3 mg stromectol online pharmacy
ivermectin cost in usa stromectol ivermectin buy
ivermectin pills canada stromectol ebay
how long does it take cialis to start working how to get a prescription for cialis
ivermectin 8000 mcg ivermectin uk buy
ivermectin pills human stromectol 3 mg tablet price
ivermectin 0.5 lotion stromectol tablets buy online
tadacip (tadalafil) tadalafil and c4 ripped
tadalafil and doxazosin interactions tadalafil 5mg generic from us
best generic viagra viagra uk
sildenafil dosing buy sildenafil 100mg
100mg sildenafil prices viagra generic otc
pharmacy technician salary canada vipps approved canadian pharmacy
what is super cialis, cialis dapoxetine cialis generic cambodia
certified canadian international pharmacy wholesale pharmacy
wonderful submit, very informative. I ponder why the other specialists of this sector don’t realize this. You must continue your writing. I’m sure, you’ve a huge readers’ base already!
free coupons for levitra buy levitra online 24 hours
generic sildenafil paypal sildenafil in women
canada drug pharmacy coupon online pharmacy group
where to buy generic viagra in canada generic viagra sildenafil citrate
ivermectin for covid pig wormer ivermectin pour on
pay cialis with pay pal cialis online purchase
walmart pharmacy store number on prescription approved canadian pharmacy
tadalafil price walmart rx tadalafil
injectable ivermectin for horses is ivermectin an antibiotic
most abused prescription drugs best online pharmacy that does not require a prescription
whats better viagra or levitra levitra 20mg filmtabletten preisvergleich
order viagra 100mg where can i get viagra prescription
levitra dose what works better viagra or levitra
cialis reviews patients free cialis samples canada
cialis no consultation lowest price cialis 20mg
schnucks pharmacy online pharmacy tech programs
humana pharmacy rx canadian-pharmacy
walgreen online pharmacy online pharmacy store in india
canadian pharmacy cipa canadapharmacyonline
scope of d pharmacy in canada national pharmacies
best canadian pharmacy cialis prescription drugs finder
43209 100597Ought to tow line this caravan together with van trailer home your entire family quick get exposed to the issues along with reversing create tight placement. awnings 880675
[url=http://cheapdrugs.store/#]erectile dysfunction medication[/url]
Suprax prescription drugs pictures
buy modafinil generic
eu pharmacy online online canadian pharmacies
what Is The Main Ingredient In Cialis?
Сериал: Мисс Марвел смотреть онлайн сериал «Мисс Марвел» Мисс Марвел (мини–сериал 2022). Ms. Marvel.
Cialis What Otc Supplyment Is Equil To It?
why Is The Cost Of Cialis Increasing Rapidly?
cheap provigil 200mg
Фильмы 2022 смотреть онлайн в хорошем качестве. Дикая просмотр фильма онлайн Фильм Про – ты решаешь, что смотреть
56353145 31503297 280573484661 9704660213070753627
90242798 56215467 45099672995 37636360634586265307
25523218 53541423 648238425736 65884759429762281783
cost of stromectol medication ivermectin cost canada
how Much Cialis Is Safe?
comfortis without vet prescription prescription drugs online without doctor
buy prescription drugs without doctor buy prescription drugs without doctor
online svenska casino slots
[url=”https://2-free-slots.com”]machine de casino[/url]
459 free casino slots
https://bit.ly/Shkala-tonov
49579089 7733196 546072912154 40846871598575363160
96137811 6196325 297028699381 43183378873939097661
10538207 47376742 703333671643 2755948017357224564
sim slots
[url=”https://411slotmachine.com”]slotomania slot machines free games[/url]
slots 300
http://is.gd/BgST4O
Ривердэйл 1,2,3,4,5,6 сезон Ривердэйл 1,2,3,4,5,6 сезон Riverdale: наконец-то новый качественный молодежный сериал. Ривердэйл – сериал, которого мы так ждали от CW.
Ривердэйл хранит немало секретов и мистических тайн. Нашим неуемным искателям развлечений будет вовсе не до улыбок.
«Ривердейл» (англ. Riverdale) — американская телевизионная подростковая драма, основанная на комиксах Арчи.
Все серии подряд доступны бесплатно, в хорошем качестве HD 720p и FullHD 1080p на русском языке.
http://tinyurl.com/29se6rmk
http://tinyurl.com/2ysuan2w
buy viagra online canada viagra shop
http://tinyurl.com/23dk354e
http://images.google.co.zw/url?q=http://netstate.ru/
great post, very informative. I wonder why the other specialists of this sector don’t notice this. You should continue your writing. I’m confident, you’ve a great readers’ base already!
Pretty nice post. I just stumbled upon your blog and wished to say that I’ve really enjoyed surfing around your blog posts. In any case I’ll be subscribing to your feed and I hope you write again soon!
http://www.ivermectinusd.com/ ivermectin otc
Thanks, I’ve just been searching for information about this topic for ages and yours is the greatest I’ve discovered till now. However, what about the conclusion? Are you sure about the supply?
https://withoutprescription.store/# canadian online pharmacy