The GameStop flurry masks the market’s underlying angst
Investors are worried that the Federal Reserve is now overly preoccupied with reducing inflation, and could be missing signs that the US economy is weakening.
The latest 21 per cent jump in the share price of the video game retailer GameStop may be garnering headlines, but the flurry in meme stocks can’t disguise growing investor concern about the deteriorating US economic outlook.
The steep rise in GameStop’s shares came after a Reddit account associated with meme stock folk hero Keith Gill posted for the first time since 2021, with a screenshot showing a bet in GameStop’s stock and options worth around $US180 million ($269 million).
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Karen Maley writes on banking and finance, specialising in financial services, private equity and investment banking. Karen is based in Sydney. Connect with Karen on Twitter. Email Karen at karen.maley@afr.com
