The scariest WSJ headline the week prior to when volatility started was the following: "New account creation hits all time high at E-Trade, TD Ameritrade, etc".
The stock market engine has been hot for 5 - 6 years now and we just threw a can of nitro into the engine by way of massive tax cuts and deregulation. And then pundits and our President brag about how awesome this ride is as if managed growth is somehow anti-American. The retail investor masses heard that message and have arrived. The masses that don't know the difference between an income statement and balance sheet or how a market cap relates to the stock price. Historically they have been a catalyst of instability and trade solely based on the chart and trends.
So volatility seemed obvious two weeks ago. But when an obvious thought arises regarding the market two quotes always come to mind:
"Far more money has been lost anticipating the correction than in the correction itself". P. Lynch
"The first person you must not fool is yourself and you are the easiest person to fool". R. Feynman
The stock market engine has been hot for 5 - 6 years now and we just threw a can of nitro into the engine by way of massive tax cuts and deregulation. And then pundits and our President brag about how awesome this ride is as if managed growth is somehow anti-American. The retail investor masses heard that message and have arrived. The masses that don't know the difference between an income statement and balance sheet or how a market cap relates to the stock price. Historically they have been a catalyst of instability and trade solely based on the chart and trends.
So volatility seemed obvious two weeks ago. But when an obvious thought arises regarding the market two quotes always come to mind:
"Far more money has been lost anticipating the correction than in the correction itself". P. Lynch
"The first person you must not fool is yourself and you are the easiest person to fool". R. Feynman