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Fortune (1996) >JOE KENNEDY, a famous rich guy in his day, exited the stock market in timely fashion after a shoeshine boy gave him some stock tips. He figured

Fortune (1996) >JOE KENNEDY, a famous rich guy in his day, exited the stock market in timely fashion after a shoeshine boy gave him some stock tips. He figured that when the shoeshine boys have tips, the market is too popular for its own good, a theory also advanced by Bernard Baruch, another vested interest who described the scene before the big Crash: "Taxi drivers told you what to buy. The shoeshine boy could give you a summary of the day's financial news as he worked with rag and polish. An old beggar who regularly patrolled the street in front of my office now gave me tips and, I suppose, spent the money I and others gave him in the market. My cook had a brokerage account and followed the ticker closely. Her paper profits were quickly blown away in the gale of 1929." Are we at the same fatal stage in the market today, when people who aren't expected to have stock tips have stock tips, including hot dog vendors, shoeshine boys, the homeless, pedicurists, barroom dancers, toll takers, and the trumpet player at the racetrack? https://archive.fortune.com/magazines/fortune/fortune_archive/1996/04/15/211503/index.htm https://archive.fortune.com/magazines/fortune/fortune_archiv...

only_as_i_fall 5y ago
Probably not, I'd argue that the internet just allows people to more easily be sucked into these sorts of information silos. The total crypto market cap is just over 1 trillion usd(depending on who you believe) and global equities market cap is nearly 100 trillion usd. I'm not that concerned so long as these low info investors stick to cryptos and meme stocks.
rchaud 5y ago
Shoeshine boys in the 1920s did not have access to 10-Ks at a press of a button like they would now. Also, with crypto, there is no point in doing due diligence because the coins in question could disappear tomorrow due to a rugpull or code vulnerability, which no amount of 3rd party DD could know. That's why everyone chases fast gains.

only_as_i_fall 5y ago

Probably not, I'd argue that the internet just allows people to more easily be sucked into these sorts of information silos. The total crypto market cap is just over 1 trillion usd(depending on who you believe) and global equities market cap is nearly 100 trillion usd. I'm not that concerned so long as these low info investors stick to cryptos and meme stocks.

rchaud 5y ago

Shoeshine boys in the 1920s did not have access to 10-Ks at a press of a button like they would now. Also, with crypto, there is no point in doing due diligence because the coins in question could disappear tomorrow due to a rugpull or code vulnerability, which no amount of 3rd party DD could know. That's why everyone chases fast gains.