Chasing Waterfalls

Measured investment professionals invariably know when “not to be in something”.

This means that we see parabolic moves often but equally don’t participate in any gains.

Devoid of commentary about fundamentals, we also don’t have our “faces ripped off” during the decline.

Aggressive wording perhaps, but I fear stories are yet to emerge of bored, young men (they are most susceptible to addiction) sitting at home, armed with a trading app, using leverage, not quantifying risk or not sizing their bet appropriately, are now staring at a 80% loss in GameStop.

It’s $90 today. Many bought stocks days go at $470. 😩

February 3, 2021
by Rob Zdravevski
rob@karriasset.com.au