Alright. I was browsing Twitter and noticed something that proves we still have a long way down. I’ll go over my main point and offer three proofs.
Main Point: The stock market has now become mainstream and everyone thinks they’re an investor now. All these new people think they know what they are doing, but have just gotten in recently so they’re only down 5%-15%. Once they feel the real pain they’ll all sell out. Here’s the three things I saw to confirm this:
- Online ‘celebrities’ (ie. youtubers, streamers, twitter people) posting their accounts and joking about how they’re down. The posts I’ve seen are down 5%-10% total, so they’ve felt no pain yet and have only been in for days or weeks. Their brain dead fans are replying ‘Just keep buying’. Good advice but they’re just saying that because it’s what they hear. Average people who aren’t used to investing/gambling aren’t used to pain.
- I’ve seen countless accounts that all of the sudden have terms like ‘Stock trader’ and ‘Investor’ in their bios. They just started posting their Robinhood and Coinbase accounts and have no clue what they’re doing.
- Black Twitter. I’ve seen so many ‘woke’ tweets about how they need to buy the dip because that’s how you make money. They’re saying white people are purposefully dropping the market so black people sell and then the white people buy the stocks back. To be fair, this is basically what happens. However, these are just fake ‘woke’ people that will influence thousands of inexperienced investors to open accounts, suffer losses, and ultimately feed into this cycle.
Tldr; buy puts on literally anything because there’s a new wave of retail investors that have no clue what they’re doing and will ultimately sell even when they preach “Buy the dip”.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.