🔥Biggest Ripper: Markets have been relatively tame the last few weeks because of interest rates woes and concerns from investors about some of the critical ingredients in our economy. There was no definitive ‘biggest Ripper’ from last week, but watch company $MOV semiconductor company $MX, and car insurance disruptor $ROOT all found mid-teen percentage gains.
🔥Last Week: In a bizarre close to the week, a large money manager was made to liquidate billions of dollars worth of stock in large “block sales.” The sale caused double-digit losses in stocks such as Discovery, ViacomCBS, and a handful of Chinese technology companies. It is believed to have been a $35 billion sale, prompted by a “forced liquidation” at a family office called Archegos Capital Management LLC.
🔥Coming Up: The market will be reacting to this forced liquidation, which was supposedly caused by a margin call that the investors could not cover. Margin, or leverage, involves the borrowing of funds to buy stocks and other assets. It’s untold if this liquidation will lead to additional large sales or deleveraging on part of financial institutions, but we will be keeping an eye on it.