- A day-trading hamster named Mr. Goxx has been beating the S&P 500, Warren Buffet and Cathie Wood.
- The hamster answers to the name Mr. Goxx who works out of a huge hamster cage.
- Mr. Goxx has access to a high-tech facility which allows him to choose between several cryptocurrencies.
Who is Mr. Goxx?
Mr. Goxx is a normal hamster with exceptional crypto trading luck. The hamster’s tricks have recently come to light and popularized across twitter as the animal’s portfolio has delivered higher returns than those who spent years gaining expertise in investments. Among those experts are Berkshire Hathaway’s Warren Buffet, Ark Investments’ Cathie Wood and various other fund managers on Wall Street.
In addition to human managers and investors, the hamster has also outperformed various global indices such as the S&P 500 and the tech-heavy NASDAQ. The Hamster’s portfolio is up by almost 20% since it started making investment decisions in June 2021. In the same period, the S&P 500 has appreciated investor’s capital by only 5.7% and the tech-heavy NASDAQ is up by 9%. Thus, the Hamster’s portfolio has beaten these indices by 350% and 110% relatively.
Thus, a person would have made four times the money if they had followed the investment decisions of the hamster rather than investing in an index fund imitating the S&P 500. In addition to these indices, its portfolio has outperformed famous bullish investors such as Cathie Wood and Warren Buffet. Surprisingly enough, Mr. Goxx has even outperformed Bitcoin as the giant cryptocurrency has given negative returns while the hamster has given positive 20%.
The hamster even has an official twitter account with over 7,000 followers. Its back team keeps updating the portfolio performance and new trades on the official twitter account on a daily basis. However, they add a disclaimer that the people should not consider Mr. Goxx’s trades as financial advice. Rather, it is just for entertainment performances.
How does Mr. Goxx take the trades?
Mr. Goxx’s investment decisions are random at best and lucky at worst. The hamster operates out of possibly the best tech-savvy hamster cage in existence. This cage contains many tools and machines which help Mr. Goxx take the trades randomly.
Firstly, there is a wheel which contains the list of several cryptocurrencies. Mr. Goxx spins this wheel to get the name of the digital asset it would trade in. Now, the issue of buying and selling arises. The hamster’s cage is equipped with two tunnels, one for buying and one for selling. Once the tunnel is chosen, the hamster’s decision is sent to a real trading platform for the trades to be executed. The team places the order with real money and updates the execution of the trade on his twitter account.
Although the team insists that people must not take its trades as investment decisions, there might be dozens of them taking the same trades. These are the kind of actions that have pumped the equity and crypto markets since 2020.
Does this indicate an upcoming crash?
No doubt the global economy has recovered from the 2020 pandemic lows. The stock markets and the crypto markets had crashed when the pandemic hit in early 2020. Since then, the markets seem to be on steroids as most of them have doubled. Even the crypto markets witnessed a spectacular bull run, seeing Bitcoin’s peak near $65,000.
However, Mr. Goxx’s trading style and people imitating it indicate an impending doom for the markets. The Hamster serves as a perfect example of dumb money entering and pumping the markets- stock and crypto markets- to exorbitant levels. The S&P 500 of United States, the Sensex of India and the entire crypto markets have touched new highs in 2021 due to the inflow of dumb and retail funds, either actively or through passive investments.
In such a case, Peter Lynch’s famous thought comes to mind. He was of the opinion that when even people from different professions start giving investment advice, it is time to get out of the market and sit on cash.
Even Robert Kiyosaki, the author of Rich Dad Poor Dad, and Michael Burry, the infamous investor who betted against the economy in 2008 have predicted the largest crash of all times. They too, have accused retail hype and dumb money to be the reason for the upcoming crash.
It will be pertinent to see how long dumb money can pump the markets until the bubble eventually bursts.