A visit from the doom squad
Repost from 2-24-2021
“After a while, investing will go from being easy to being hard again, and then everyone will go back to pipefitting or whatever else they do to earn a check. But now we have pipefitters who are contemplating leaving their jobs to stay home and day trade because it is just that easy. You buy something, and it goes up. You can be your own hedge fund. There was a study of day traders in South Korea some years ago. The researchers observed the behavior of a few thousand of them. After six months, 90% of them had given up. After a year, the 1% who were left barely had enough money to cover their daily expenses.”
USAGOLD note: Ran into this Dillian assessment while researching another topic. As always, he cuts to the nitty-gritty. This time his subject is the current speculative mania and how it might be affected down the road by Fed tapering. One drinks and dances until the music stops. The next day’s hangover is the price paid, but for many, as Dillian points out, it can be considerably worse than the average morning-after headache.