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Watch out for the Leverage Unwinding in 2021’s Markets
By Singapore's Budget Babe  •  May 6, 2021
If you've been scratching your head over how 2021 has been shaping up thus far - what with the Gamestop-Reddit short-selling saga, the dizzyingly fast collapse of global finance firm Greensill Capital, and now Archegos Capital. 2021 has barely begun but we've already seen 3 major leverage unwinding events unfold thus far, and could there be more to bet? Perhaps, and I won't be surprised if they are. (Background) How did leverage kill 3 companies? For those of you who have been confused (or haven't been following the news), I'll do a quick summary of all 3 sagas. GameStop: A classic David-vs-Goliath plot that was started on Reddit, gathering the masses to target hedge funds who shorted the struggling retailer (the company was the second-most-shorted firm out of more than 6,000 companies listed on NASDAQ and NYSE). Led by Youtuber "Roaring Kitty" (or "DeepF*ckingValue" on Reddit, whose real identity is former trader Keith Gill),...
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By Singapore's Budget Babe
Budget Babe is an ordinary lady striving to achieve financial freedom in Singapore before the age of 45. She is always looking for cost-effective ways to live a fulfilling life in amidst Singapore's rising costs, and writes in order to empower fellow Singaporeans on taking charge of their own lives and finances. The final goal is to eventually break free from the competitive rat race. Will I meet you there? ...
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