Skip to Content
Rekenthaler Report

With GameStop, Hedge Funds Might Enjoy the Last Laugh

Do individuals stand to benefit from penny stocks in the long term? Not likely.

Mentioned: ,

The day that I interviewed for a position at Morningstar, on Feb. 6, 1988, the Dow Jones Industrial Average closed at 1,910. Most Wall Street veterans were cautious. Stocks had righted themselves since October’s “Black Monday” crash, thereby averting disaster, but the Dow Jones had nevertheless gained 150% over the preceding six years. The market’s glory days appeared to be behind it.

Equities then began to rise. They grew by 15% for the rest of 1988, and double that amount in 1989. With only brief respites, stock prices increased for another decade. It became the greatest bull market in U.S. history. Throughout that ascendancy, the old guard muttered that stocks had become foolishly overpriced. Eventually, I paid them no more heed.

John Rekenthaler does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.