Just wanted to keep this part of the thread front and center. Some heavy cheering from the magazine and paper stands these days. I get a very suspicious feeling when it gets to this feverish level.
https://oltnews.com/americans-cant-get-enough-of-the-stock-market-the-wall-street-journal Americans can’t get enough of the stock market – The Wall Street Journal 2 days ago Americans are all in the stock market. Individual investors are holding more stocks than ever as major indexes reach new highs. They also increase the stake by borrowing to amplify their bets or by buying more and more on small dips in the market. US household inventories rose to 41% of their total financial assets in April, the highest level on record. This is according to data from JPMorgan Chase & Co. and the Federal Reserve going back to 1952 which includes 401 (k) retirement accounts. JPMorgan’s Nikolaos Panigirtzoglou, who analyzed the data, attributes the high allocations to the appreciation in stock prices alongside stock purchases. The enthusiasm for equities comes as market volatility has eased slightly and the S&P 500 has hit 25 all-time highs this year, fueled by a stellar earnings season and the prospect of an economic recovery faster than many believe. had planned. Meanwhile, stimulus controls fueled a record increase in household income, boosting spending and helping propel the recovery. In the coming week, the monthly jobs and earnings report for companies like Uber Technologies Inc. will provide clues to the strength of the recovery. Millions of new brokerage accounts were created during the Covid-19 pandemic and some investors who first dabbled in stock or options trading in the past year have stuck around , adding to their investments. Financial advisers and fund managers said their clients became more comfortable owning stocks when they witnessed the powerful rally of the past year, with some even wondering why they needed bonds in the past. their portfolios with consistently low returns. The ever-growing market, recently bolstered by impressive profits from companies like Facebook Inc. and alphabet Inc. —At attracted even more investors. Bank of America retail customers Corp. bought stocks for nine straight weeks, while hedge funds and other large investors recently fled the stock market, analysts at the bank said in an April 27 note. Damon White, a 44-year-old medical assistant based in Sewell, NJ, said he started learning about stocks and options through social media platforms like TikTok while on leave last year . Damon White recently invested money in stocks like Tesla and American Airlines. Photo: Damon white He’s back to work but says he still checks his investments frequently, recently pouring thousands more into the market, especially stocks like Apple, Tesla. Inc. and American Airlines Group Inc., bringing its total inventory to over $ 400,000. “It was scary when you put in a substantial amount of money,” White said. But, “if you have a quick finger, you will sell … and you will lose in the long run.” He does not hold any bonds and plans to continue investing money in stocks. Many individual investors were not deterred by the market downturns. Data from research firm Vanda Research shows that individual investors tend to buy more stocks when the S&P 500 drops 1% on the day it rises by the same amount, and their determination to buy during sales s’ is reinforced during the pandemic. Some have even borrowed to boost their stock market bets. David Sadkin, a partner at Bel Air Investment Advisors who oversees $ 4.6 billion for high net worth clients, said the share of their money that is in the stock market has grown to around 65% from around 45% a year. last, while he reduced investments. in bonds. As his bonds mature, he gradually reinvests the money in stocks. The yield on the 10-year Treasury bill stood at 1.632% on Friday, down from around 0.915% where it started the year, but still at an all-time low. “In order to achieve our clients’ goals, we need to take more risks,” Sadkin said. “We intend to continue to reallocate into risky assets as long as interest rates remain this low.” Other investors have been even more aggressive. A survey by the American Association of Individuals Investors showed investor allocations to the stock market peaked at around three years of 70% in March. And margin debt – or the money investors borrow to buy securities – hit a record high in March, according to figures from the Financial Sector Regulatory Authority. Randy Lee, a 31-year-old software engineer based in Lansing, Mich., Said he was initially drawn to the rapid thrills of options trading, seeing his small investments double or triple within hours. Now he says he’s still playing the options market, but also owns “boring” stocks like Royal Caribbean Group and Kraft Heinz. Co. Randy Lee says he doubled the contributions to his retirement account. Photo: Randy Lee Shaken by the uncertainty of the pandemic, he has also started putting more money into his retirement account. He doubled his bi-weekly contributions to the account and opened a Roth IRA account, to which he added in recent weeks. Most of his holdings are on the stock market. “I’ve never had so much time to sit at home and watch this stuff,” Mr. Lee said. “What better place to make money like everyone else than to start playing the stock market.” SHARE YOUR THOUGHTS How has your strategy changed (if at all) during this period of market frenzy? Join the conversation below. He is bullish on stocks, especially after seeing tech giants report record profits last week. But he’s worried about a future stock market crash and has bought cryptocurrencies, which he sees as a hedge against a downturn. He’s not the only one – the rise in prices of everything from lumber to dogecoin to stocks has sparked concerns about a market bubble. And for some analysts, the exuberance surrounding the stock market is a red flag. “Retail investors have made a lot of money in many areas, including stocks, over the past year. At some point, given the level of their equity allocation, the risk is that they decide to exit and take a profit, ”said Mr. Panigirtzoglou, Managing Director of JPMorgan. “This is indeed what happened before in 2000.” Write to Gunjan Banerji at Gunjan.Banerji@wsj.com
The problem is so called gurus, CNBC, Bloomberg, hacks on TV all promoting a get rich quick mentality among the masses of aspiring traders. They do a hell of a job promoting a gambler's mentality to these newbie traders. Where they make it seem that they can turn $1,000-$5,000 into millions in a short period of time. They do not mention the fact that the only way you can turn that small amount of monies into huge amounts of monies in a short period of time, is to take excessive risks which results in most cases, of losing all your monies.
History has shown that when buying above historic P/E ratios people invariably lose money The average P/E for the S&P 500 has historically ranged from 13 to 15 Now it's 38. The numbers don't lie, so anyone buying today for the long haul is likely to be disappointed-short term it's pump and dump and BTFD
I think this pandemic is the reason why more people have taken interest in stock market investments more than before. People got time to think about possible ways of making money other than their jobs and I think that’s great.
%% BUY Monday[cause they sold it + covered, + buying Mon really hasnt much to do with WSJ. They do like to help churn accounts/LOL. Some of thier articles are good; i like their weekly candle charts, but not thier 65 day moving average.................................................................
Here is how to beat the market with limited risk. 1: Buy when the SP500 drops 10%. (black line) 2 : Put a 5% stop. (red line) 3: Take profit at the 15% level (green line) This is a 5 to 1 reward risk trade plus you will never eat another 50% drawdown (or more) again, during a stock market crash. See the S&P 500 Historical annual returns graphic below for more details (last 60 years), and notice what happens next each time the market loses 10% of its value (black line below the zero), on an annual basis.... We can also do the reverse and short the market after a 20% move (10% stop) and take profit at the zero line. (I am sure this simple system can be used with other equity indexes as well, worldwide). Click here to see a bigger chart : https://datawrapper.dwcdn.net/UZZDG/8/