James Marchese Offers Keen Financial Advice in the Wake of the GameStop Saga
GameStop has been recognized worldwide when a large number of individuals decided to buy up the stock, sending the stock value rocketing into the stratosphere. Long-term investors had shorted the stock based on the company’s current financial challenges, and these short sellers lost billions of dollars in a matter of days. The situation has provoked a lot of discussion about how (or even if) such a fiasco should be prevented by government and Wall Street interference in the future. Successful entrepreneur and business owner James Marchese steers clear of politics and instead offers aspiring investors wise advice on how to turn profits long-term.
“For the twenty-five-year-old investor, a $5,000 investment with a 20% annual return will be worth a million dollars by the time the investor is sixty-seven years old. The point is not to get too greedy. GameStop was $483 a share and now is $63 (as of February 7, 2021),” James Marchese notes. The drastic fall in price isn’t a surprise to anyone who has experience investing in stocks and bonds. Investors know that there is always something suspicious about stocks that immediately and drastically rise in value while a company struggles with financial and other challenges. The GameStop stock was shorted in the first place because the company wasn’t doing well for an extended period of time. Sadly, most people who made vast sums of money from investing in GameStop stocks lost their money just as quickly once the buying spree ended.