Click here for the PDF: The Weekly Beacon – February 10 2023

We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.

Feel free to send in your pictures of lighthouses to be featured in our weekly commentary.

This weeks issue: BBY stock, Bed Bath & Beyond bankrupt, Cash strapped companies, Meme stocks, Short squeezes, Retail investors, Investment banks, Deal market, IPOs, IPO launches, M&A activity, Liquidity drying up, Snowflake, Coinbase, High growth stocks, ARKK, SPACs, Inflation, Goods inflation, Services inflation, Ticket prices rising, Cruise demand surging, Airline stocks, Royal Caribbean stock, Norwegian Cruise Lines stock, Ray Dalio, Bridgewater & Associates, China, U.S. dominance, British Empire, Chinese stocks, Global reserve currencies, USD, Debt, Global trade.


The return of the meme

It appears retail investors are not doing as poorly as some thought. Bed Bath & Beyond shares surged over a 5-day trading period ending February 6th.

We mention retail traders because this has been one of their favorites since Covid-19 began. Bed Bath & Beyond was heavily shorted by hedge funds drawing interest from retail investors. The stock surging this past week has nothing to do with earnings, forecasts, revenue, or even a buyout. It’s complete retail insanity. We like retail participation and think it’s important all consumers invest and save for their future but jumping into a stock with no research or as a joke is extremely dangerous, we would argue it could be safer to gamble on the Super Bowl.

Just a month after Bed Bath & Beyond announced it was running out of money, the stock doubles, and it appears easy money is circulating in the stock market yet again. (There was no major announcement that led to the stock surging like a restructuring plan).

Over the past 6-8 weeks some of the most overvalued names have surged off their bottoms as investors speculate the bear market is over and that the FED will pivot to cut interest rates. Before you jump into those garbage SPACs and ARKK holdings we encourage our readers to look at valuations and not simply…………….