Train Wreck Waiting To Happen

An interesting article and one that has me as a 76 year old nodding my head in agreement,

Mum and dad investors a ‘train wreck waiting to happen’: ASIC

 

That's old news I have to say.

Most have taken their profits and moved on. If they haven't sold up then they're maxing their profits.

Time for a Guinness!

 

2021 going to be interesting

 

Not arguing with the point of the article that retail customers needs to be careful.The US is seeing an increase in "amateurs" too - encouraged by people like David Portnoy, who has discovered day trading.

Minor point though - I did notice the statement that retail investors had moved the markets off the March low. Institutional whales move markets, not retail investors. ASX also tends to broadly follow the US.

 

Personally I disagree, there are plenty of markets which are still looking good value right now despite the bounce. Should people not buy the ASX when it is 15% off its previous highs? It's price to earnings will take a hit this year, but will it ever bounce back? My bet is yes. You're not buying today's earnings, you're buying the next 20+ years earnings. A 15% decline in price means it is anticipated there will be a 15% decline on average in the expected earnings for the entirety of that timeframe. That's a massive hit.

These articles are confirmation bias. Someone likely sold out on the way down or didn't buy waiting for the even lower bottom that never came. They then justify it to themselves by picking whatever evidence supports their idea, saying this is crazy and it must go down again. It might, it might not.