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by yibg 1966 days ago
Seems like a potential confirmation bias here with regards to GME. GME may be in a feedback loop right now, but how many other stocks had the beginnings of a feedback loop but fizzled out? How many companies started to win but didn't attract the best employees?

Put it another way, is there any predictive power here or is it only something that can be observed after the fact? Seems like the latter.

2 comments

Also, are we even "after the fact" at this moment? In other words, let's see in three months' time (or one year) whether there really was a positive feedback loop that saved GME or whether there was a rapid boom-and-bust cycle and GME is back to where it was last year (or even bankrupt). It's too early to draw conclusions while we're still in the middle of the frenzy.
> It's too early to draw conclusions while we're still in the middle of the frenzy.

100%. We're certainly not yet after the fact.

There are firms I've heard of who have social media watchers and they play based on "buzz". I don't know how that pans out in long term holdings, but short term I'm guessing they've been successful or they wouldn't keep doing it.
There was a post on wsb where he wrote a bot to keep track of sentiment around tickers. Then he played said tickers based on sentiment and the portfolio was consistent and possibly out performed the market but don't quote me on the last one.