Click here: The Weekly Beacon – May 13 2022
We will be giving some macroeconomic market updates on a weekly basis. No
recommendations will be given in this commentary and we encourage you to contact us
today if you have any questions regarding any observations.
Feel free to send in your pictures of lighthouses to be featured in our weekly commentary.
This weeks issue: Day Traders, Social Media Investors, Stimulus, CERB, Inflation, Unprofitable Technology Stocks, Sector Performance, Energy vs. Technology, Netflix, Uber, Facebook, Amazon, Rivian, Nasdaq Loss, March 2020, Slow Loss, market Performance, S&P 500, April Inflation, U.S. CPI, SPACs, SPAC Collapse, Goldman Sachs, SPAK ETF, Weak Demand, Oil Demand, Saudi Arabia, UAE, OPEC, Supply Shortages, Renewables, Increasing Demand, Crypto Market, Bitcoin, Stable Coins, Sell Off, Liquidity Crunch.
When All Else Fails
The Covid-19 pandemic changed numerous things across the global economy. One of those things was who invests. After easy money from CERB cheques (Canada) and stimulus payments (U.S.) were paid out to hundreds of millions of North Americans, many novice investors hit the stock market. We say hit the stock market because many treated and still treat the stock market like a Las Vegas Casino.
All of a sudden novice investors became gurus, day trading became cool, and every hype investor was returning 50% on an annual basis (sometimes more). People with no experience were even selling courses on how to trade.
Fast forward a year and a half and the narrative has completely changed. Those day traders have disappeared. Those hype investors on Twitter seem to not tweet anymore. This is because they did no research before and rode the train to profit. Now that creating a positive return is hard, they are stuck and do not want to look stupid online.
This is part of the reason against an edit button on Twitter. People could edit a stock call and look like geniuses.