A Closer Look … Stocks-Inexperience-Investors-Hedge Funds-Day Trading-

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with Anthony Newcombe 

Let’s take a closer look … 

Some Causes of the Stock Market Volatility Craze 

Topic:  That ‘silly, crazy stock market’ this month   

Categories: Economics, Financials, and Social Psychology    

Between a rock and a hard place? You probably spent some of the past few weeks rummaging through the onslaught of news concerning the stock market.  In just a few days, there were swings from single digits to over thousands of percentage gains. What is the most amazing part? Ironically, these public companies did absolutely NOTHING different to cause this phenomenon. In fact, some of the biggest debt funds pounced on this situation to dump old, crappy positions they had. This generated some outlandish profits (for those who could get out in time!)   

However, for those who don’t own any stocks, I hear you. Who cares, right?!  Well, the rest of us care. Unfortunately, it caught our attention instantly. This might be due to many of a certain age recall being caught up in this “spin cycle” very similar to this in our investing past.  In fact, if your stomach didn’t roil a bit, and your brow didn’t raise, you must be a first-time trader. You have no scar tissue built up from previous downturns.  You haven’t been burned…yet. 

Moreover, if you recall in spring, 2001, there was a ton of hoopla regarding “surging dotcom stocks.” It seemed like you didn’t even need an ounce of ability to make profitable picks during that time.  Just buy, buy, buy (Thanks, Jim Cramer!) Subsequently, there was a different kind of BOOM!  There was a “crash-landing.” In little time, the markets tanked. Everyone ran for the hills, and many brokers ducked their calls. We were shirtless, stuck, and scared!    

Nevertheless, I’m not naïve enough to think that the ‘dotcom bubble of 2001’ is anywhere near the same as the last two weeks have been. But I tell you, when you see some of the publicly traded stocks like GameStop (GME) and AMC Theaters (AMC), it forces a reflection moment. These stocks went from (practically) zero to amazing heights. Then, they returned to earth again in mere days. Unfortunately, it rhymes with some of our tortured past like 1987’s Black Monday, spring 2001, and September 2008.  I agree, all had different characteristics. We won’t get into them all, but each created a form of sheer terror in the marketplace at the time!   

Thankfully, at least for today, it seems like the storm has mostly passed. We’re back to the “old, regular froth” that we’ve become accustomed to from the past several fiscal years.  We’ll just keep our chinstraps fastened, our eye on the ball, and continue onward, right?  I mean, what else can we do?  Happy investing, folks!  

Any ideas?    

-A.N.     

Feeling a little nauseated?

Supporting links  

Bloomberg 

CNBC Business 

Business Insider 

A Closer Look …

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with Anthony Newcombe 

Let’s take a closer look … 

Topic: The most important characteristics of an entrepreneur 

Area: The impact of parents’ words on their children 

en·tre·pre·neur /ˌäntrəprəˈnər,ˌäntrəprəˈno͝o(ə)r/ 

noun: entrepreneur; plural noun: entrepreneurs 

  1. a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so. 

(credit: Oxford Languages) 

Entrepreneur (my definition) – An entrepreneur represents many key elements wrapped into one.  First and foremost, he or she must be a born leader, a person who yearns to be the most responsible party in any business decision to be made.  An entrepreneur is creative, highly intelligent, and motivated to succeed at a level greater than the typical wage earner.  He or she understands that decision – or indecision – could mean the difference between a great idea becoming a great product, service, or organization – or just simply one of many “brainstormed ideas” that go nowhere. 

 An entrepreneur understands that he or she needs a roadmap to success.  By creating a comprehensive plan of attack, the entrepreneur will now be able to take educated and informed risks because all options have been weighed prior to committing one way or another.  Once all the possible angles have been carefully thought out, he or she will have shifted the odds of success as much as possible in his or her favor and will know that the time has come to seize an opportunity. 

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