Market Jenga: At some point… it going to come crashing down.. 

This is going to be an interesting Month. We've going to get it all: emotion, manipulation, the behaviour of crowds, what people want to believe, what is true, and fundamental facts about markets; primarily that any financial asset is only worth what people believe it to be worth. What the actual/real worth of any stock is, is an empty question – it's the price the market is willing to pay that counts. 

As we start the week, it's going to be about Silver as the Reddit traders follow the posts imploring them to buy-into the feeding frenzy and ramp up the precious metal on non-sensical promises they are going to bring down the banks by forcing them to cover trading positions. Ask the Bunker-Hunts how well that worked for them back in 1980.

To understand the current Reddit mentality, check the interview in the Journal with one of the Reddit traders behind the Gamestop mania. Keith Gill is a former marketing chap from Mass Mutual. Today is he "DeepF***ingValue" on Reddit, also known as "Roaring Kitty" on You Tube, and he's got $33 million in his bank account – which is impressive, but demonstrates the power of convincing others to back your belief. He made a paper gain of $20mm on Gamestop while being interviewed by the WSJ!

What's interesting is it's not just Reddit. Since Wednesday I've seen dozens of posts from astute financial professionals urging their colleagues to follow the money and join the Silver ramp. Who doesn't like a free-lunch? It's kind of logical from a market perspective, but totally unjustifiable from any fundamental narrative about Silver suddenly being worth more. Nope, the only reason to buy is to coat-tail the "let's destroy Wall Street by ramping Silver" story. I guess you might call it a "career hedge"?