GME - Macro Guru Raoul Pal Says Fresh GameStop-Led Meme Stock Frenzy Has Nothing To Do With Interest Rates: 'Clock Is Ticking On The 25-40-Year-Olds' | Benzinga
The meme stock frenzy reignited on Wall Street this week, fueled by the return of “Roaring Kitty,” a key player in the 2021 surge. This resurgence sparked a discussion on the psychology driving these volatile investments, with economist and former hedge fund manager Raoul Pal offering his insights.
What Happened: A social media user took aim at traditional finance theories suggesting low interest rates caused the meme stock phenomenon surrounding GameStop Corp. (NYSE:GME).
“One of the funniest things is tradfi assigning the GME/meme phenomena to low interest rates. Well guess what…interest rates are at multi-decade highs and they running it back again lmao,” the user said.
Pal agreed with this argument. “Yeah, its nothing to do with interest rates but the need for speculation to get ahead because of interest rates, debasement, jobs, ...