bet on the resurgence of the businesses following the worst of the coronavirus pandemic it's difficult to give a short summary of events for these stories as the squeezes are still ongoing but the fact that investors boosted these stocks at a point where they were on the rocks meant that they were able to raise additional capital this meant that they could come out of the pandemic in a significantly better financial shape than they were in at the start it's not obvious to me based on financial history that overpaying for a stock in this manner makes much sense from an investment point of view but people are entitled to do what they want with their money we'll have to wait and see how these squeezes eventually end but there are possibly lessons investors can take away from the earlier examples that might apply to these stocks as i've mentioned before on this channel in the long run the stock market tends to drift up at around seven to ten percent per year short selling is thus a bit like swimming upstream in many of the examples we covered even when short sellers were right in the long term about a stock's direction they still suffered catastrophic losses you can also see examples of people who try to profit from squeezing a stock who wipe themselves out entirely you're often better off being on the sidelines in these situations and may be going for the easy wins if you do decide to short stocks you need to have a really good approach to risk management don't forget to check out our video sponsor the daily upside by clicking on the link in the description it's a great newsletter that i can firmly recommend if you enjoyed this video you should watch this one next where i go through the sec analysis of the gamestop short squeeze where the sec looked at the actual trades of short sellers and the retail traders who participated in the squeeze it's a really interesting piece see you guys later bye
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