Who’s Afraid Of The Big, Bad Tech Mini-Correction?
It says a lot about market psychology, and maybe even more about the generational composition of today's investor base and the average age of journalists, when a handful of bad sessions for equities, including a 2% down day for the S&P, count as "scary."
"Scary" was bandied about by financial media outlets towards the end of another interesting week. I don't think it's the best adjective. Or at least not if we're talking strictly about equities. If you're "scared" by a 5% dip, a technical c
“Battle-hardened alt-coin worriors”…LOL
My wife and I married in 1967 and began investing that year. The DJIA topped in 1966 and didn’t break that top for 16 years in 1982, ironically in the midst of a deep recession, high inflation and ultra high interest rates that hit 20%. Another large stock market dead period hit toward the end of the last century, lasting more than 10 ten years. I was awash in bonds and never noticed. For more than 30 years in the midst of my investing life, bonds out-earned stocks and young investors had little to turn to but CDs. Since the great unpleasantness of 2008 stocks have done much the same as bonds did a couple decades before, go straight up. By then I had retired and bought few stocks as I wanted income not gains. Today, folks like Robinhood, Schwab and Fidelity are trying to convince younger investors, the ones with college debt, that $50 bucks makes you a stock investor. Sadly, it doesn’t. Morgan wealth has an ad showing a guy in a bar, playing with his phone, trying to figure out if taking a couple hundred in gains makes him some sort of tycoon. A big part of the financial community seems to be bent on getting the newbs to see investing as an alternative to Fanduel. That won’t make them happier down the line. Neither will day trading in meme stocks.
Dr. L, I love the Fanduel comparison. It’s spot on now that you can risk money calling the next pitch or next play while you watch a game. And to think how many of us once ridiculed the Chinese for betting on everything!
Does anyone else see parallels with ancient Rome?