A Closer Look …

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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 … 

Area(s):  Education, Business, Psychology 

Topic: Reliance on remote technology for school, work, and emotional well-being … 

Issue: Are we putting so much emphasis on virtual technology that we may find ourselves paralyzed when it’s time to ‘come back into the real world?’  Let’s get something straight from the outset.  I have no special insights or secrets for what the heck we are expected to do from 2021 onward.  However, like nearly all of you out there, I find myself thinking, discussing, and, occasionally, well, fretting about the repercussions of this new world we’ve had to carve out for ourselves in order to move forward however quickly or slowly we perceive we are.  The most recurrent thought is about this Zoom/ GoToMeeting/ TikTok ‘stuff.’  Whether we’re trying to get through a lecture, business meeting, family call, or, creating the next (wink, wink) viral video sensation (we’re all at some point toying with our 15 minutes of fame, right?) – we should also wonder what exactly all of this means. We instead seem to mindlessly download, log in and share every nook and cranny of our lives with – well, who knows who?!  In other words, are we potentially exposing ourselves to future legal matters (IP/ property theft, civil liability, etc.) while making use of this technology?   

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