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So many people fail to see this. The number of stock market "investors" making Tik Tok videos and people gambling with rent money might even be worse than 2000.
by fred_is_fred 6y ago
So many people fail to see this. The number of stock market "investors" making Tik Tok videos and people gambling with rent money might even be worse than 2000.
- Someone1234 6y agoPeople are bored and trapped at home. It isn't that surprising that day trading as a hobby has picked up a little. A market correction wouldn't be that surprising in general, but keep in mind a bubble and a correction aren't the same thing. Plus, and maybe more importantly, even know a correction could occur without knowing when isn't actually actionable information (could be tomorrow, next year, or three years from now, and you would lose money if you react at the wrong time). So people saying we're in a bubble/correction is due, what action would you have people take? If the answer is "nothing" or "I don't know" then what good is that?
- loopercal 6y ago>what action would you have people take People can obviously do whatever they want as long as they're aware past performance...blah...blah...don't invest more than you can lose...blah. I've pulled out from everything with a rich P/E ratio and am only keeping money in companies that I feel are a) stable and b) have a reasonable-to-low P/E ratio. My thought is that new investors tend to go for well-known companies or meme stocks, but either way driving up the P/E ratio. I don't want to be caught in the downswing when these investors leave.
- fred_is_fred 6y agoThe difference here is understanding that investing and gambling are not the same thing. If they are investing for retirement and buying low cost index funds, I would do nothing. If they are gambling due to the dank memes, I would ensure that I wasn't gambling anything I couldn't afford to lose.